Indian retail investors have been given a new gateway to Wall Street, with the NSE International Exchange (NSE IX) launching a platform that allows direct trading in US-listed stocks such as Apple and Microsoft from India’s International financial services centre (IFSC) at GIFT City. The move, positioned as a milestone in deepening global market access for Indian investors, has also triggered questions from regulatory observers about oversight, investor protection and jurisdiction.
However, a former legal officer of the Securities and Exchange Board of India (SEBI) expressed concern over the regulatory architecture underpinning the initiative. He says, “As you know, all over the world, foreign securities being sold in the local market need registration of dealers with the local securities regulator. Since IFSC is a deemed foreign market selling such securities in India, it would need registration, but currently, there is no regulation notified by SEBI.”
“Who will protect the Indian investors? RBI's role is limited to forex issue. IFSC has no jurisdiction in the domestic market. Don’t know who approved this at a time when NSE IPO is due,” the ex-official from SEBI says.
The remarks reflect unease in some quarters about how investor safeguards will function when overseas securities are distributed through a structure that straddles domestic and offshore regulatory regimes.
The new facility has been rolled out by NSE IX, the international arm of the National Stock Exchange of India (NSE), in GIFT City, Gujarat. Through its global access platform, resident Indian investors can now buy and sell US-listed equities and exchange-traded funds (ETFs) in compliance with Reserve Bank of India’s (RBI's) liberalised remittance scheme (LRS). The LRS framework allows individuals to remit up to US$250,000 per financial year for permitted overseas investments and other transactions.
Under the operational model, investors complete digital onboarding using PAN and know-your-customer (KYC) documentation, remit funds in Indian rupees, which are converted into US dollars, and execute trades routed via accounts within IFSC. The platform also offers fractional investing, enabling participants to buy a portion of high-priced US shares rather than whole units, lowering the capital threshold for retail investors seeking exposure to global technology giants and other multinational corporations.
NSE IX has indicated that the current launch is only the first phase, focused on US markets, with plans to expand access to more than 30 international markets over the coming months. Exchange officials have described the initiative as a structural expansion of investor access and part of a broader strategy to position GIFT City as a competitive international financial hub.
The development represents the latest step in India’s multi-year push to internationalise its financial ecosystem. Since the establishment of the IFSC framework and the commencement of international exchange operations in GIFT City in 2017, policy-makers have sought to create a globally connected platform that can facilitate cross-border capital flows while operating under a distinct regulatory environment. The idea was to allow India-based institutions and investors to transact in foreign currency products within a tax-efficient and internationally benchmarked regime, thereby reducing the need to route transactions entirely through overseas financial centres.
Until now, Indian investors seeking exposure to US equities typically relied on domestic mutual funds (MFs) and exchange-traded funds (ETFs) with international mandates, or opened accounts directly with overseas brokerage firms under the LRS route. While these avenues offered access, they often involved additional documentation, higher transaction costs, and complexities related to foreign compliance. The NSE IX initiative aims to simplify that process by embedding global trading access within an exchange-linked infrastructure that remains connected to Indian market participants.
However, the regulatory layering is complex. IFSC operates under a separate legal and regulatory framework, with its own authority overseeing activities within GIFT City. At the same time, retail investors accessing the platform are resident Indians subject to domestic securities laws and foreign exchange regulations. Critics argue that when foreign securities are effectively marketed and sold to residents within India, clarity is required on which regulator bears primary responsibility for disclosure standards, intermediary registration, grievance redressal and enforcement in case of disputes or mis-selling.
However, these criticisms are countered by the fact that trades are being executed in an offshore jurisdiction recognised under Indian law and remain fully compliant with the LRS regime. Investors are consciously remitting funds abroad for overseas investments, and the exchange is providing a regulated infrastructure rather than directly issuing or promoting foreign securities. Technological safeguards, digital KYC processes and transaction transparency embedded in the system provide additional protection.
The timing of the launch has also drawn attention, particularly as the parent exchange prepares for a long-awaited public listing. Expanding global access could strengthen the Exchange’s strategic positioning and revenue diversification ahead of its initial public offering, though the exchange has framed the rollout as part of a long-term vision rather than a short-term tactical move.
For investors, the appeal is clear. Direct access to US-listed companies offers portfolio diversification beyond domestic sectors and provides exposure to industries such as advanced technology, global consumer brands and biotechnology that may have limited representation in Indian markets. Fractional investing further democratises participation by allowing smaller ticket sizes. Yet, currency volatility, differences in corporate governance regimes and overseas taxation remain risks that investors must assess carefully.
As the platform scales up and potentially adds new geographies, regulatory clarity will likely become central to sustaining investor confidence. The questions raised by the former official from SEBI underscore the importance of clearly delineated oversight, especially when cross-border financial innovation intersects with domestic retail participation. Whether the initiative becomes a transformative gateway to global markets or a flashpoint for regulatory recalibration may depend on how these jurisdictional and investor-protection concerns are addressed in the months ahead.
