Dhan Brings US Stocks and ETFs to Indian Investors via GIFT City Route
Indian investors can now buy and sell US-listed stocks and exchange-traded funds (ETFs) on the IFSC-SE (Indian Financial Securities Clearing Corporation-Stock Exchange) platform through their Indian Demat accounts.
The launch marks a significant milestone for trading and investing platform Dhan, which has expanded its services to include US-listed securities via its wholly-owned subsidiary Raise IFSC Private Limited, a member of India INX operating under the IFSCA framework.
The partnership enables Indian investors to access a broader range of investment opportunities, including blue-chip US companies and ETFs tracking various asset classes, such as indices and sectors. This move is expected to boost foreign portfolio investments in the US and create new avenues for Indian investors seeking to diversify their portfolios.
What this Means
This development effectively bridges the gap between Indian and US capital markets, allowing Indian investors to tap into a vast and liquid pool of investment opportunities. What this means in practical terms is that an individual in India can now easily invest in top US companies like Apple, Amazon, or Google through Dhan’s platform, without needing to open a US brokerage account or deal with complex tax implications.
The integration with Dhan’s platform is expected to streamline the investing process, providing Indian investors with access to real-time pricing, seamless order execution, and robust risk management tools. This move is set to further popularize the GIFT City framework, which aims to establish India as a major financial hub.
Benefits for Indian Investors
The addition of US-listed stocks and ETFs on Dhan’s platform presents a compelling opportunity for Indian investors to hedge against market volatility and diversify their portfolios. By providing a straightforward and cost-effective way to invest in US-listed securities, Dhan is likely to attract a significant number of retail investors seeking exposure to global markets.
Regulatory Framework
The partnership between Dhan and Raise IFSC Private Limited operates under the regulatory framework of the International Financial Services Centres Authority (IFSCA). This framework ensures compliance with all relevant regulations and standards, providing a safe and secure environment for Indian investors to access and trade US-listed securities.
