Indian residents can use the Liberalised Remittance Scheme (LRS) to send money for permitted investments through GIFT City, but the route does not create an extra LRS allowance or guarantee that an investor owns U.S.-listed shares directly. The key distinction is between NSE IFSC receipts linked to U.S. shares and provider-specific offers—some of which advertise both U.S. stocks and ETFs. Before funding an account, check what the product legally is, which securities are available, and how the provider handles custody, costs and withdrawals.
What is the LRS limit for investing through GIFT City?
The Reserve Bank of India’s Master Direction on the Liberalised Remittance Scheme allows resident individuals to remit up to USD 250,000 per financial year (April–March) for permitted current or capital account transactions, or a combination of them, subject to the scheme’s conditions. This is the overall LRS limit—not a separate allowance for GIFT City. Remittances for other permitted purposes during the same financial year count toward that limit.
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On July 10, 2024, the RBI broadened the stated purposes for remittances to an International Financial Services Centre (IFSC). The circular permits remittances for financial services or products in an IFSC and for permitted transactions in another foreign jurisdiction through an IFSC foreign-currency account. It also allows resident individuals to open such an account for those permissible purposes. The circular does not remove the LRS ceiling or make every foreign investment or transfer permissible. Check the latest RBI rules and confirm the proposed transaction with your authorised dealer bank.
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What does buying through GIFT City mean?
GIFT City is the location of an IFSC financial-services framework, not a single investment product. An investor’s legal holding depends on the specific instrument and account arrangement offered. It could be an IFSC receipt linked to an underlying share, or another product or claim offered by a provider. The product name or a general claim of access to “U.S. stocks and ETFs” is not enough to establish direct ownership of the U.S.-listed security.
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NSE IFSC receipts linked to U.S. shares
NSE International Exchange’s investor guidance describes unsponsored depositary receipts linked to U.S. shares. Trading, clearing, settlement and holding for this exchange route are described under the IFSC regulatory structure. A receipt is the instrument being traded; it should not automatically be described as a U.S. brokerage account or as direct ownership of the underlying share. The NSE material cited here does not establish that this receipt route offers ETFs.
Provider-specific offers
A provider may advertise access to a broader set of products or use a different account structure. For example, Mirae Asset Sharekhan currently advertises access to U.S. stocks and ETFs via GIFT City and displays an IFSCA broker-dealer registration number. That surfaced offer alone does not establish which ETFs or shares are currently available, how each investment is held, or the applicable fees and eligibility. Confirm those points in the provider’s current legal and product documents before opening or funding an account.
SEBI’s May 2, 2025 circular facilitates securities-related activities in GIFT-IFSC by SEBI-registered brokers through a separate business unit. That regulatory context does not, by itself, confirm that a particular broker offers a specific product or establish the terms of an investor’s account.
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How do I fund a GIFT City investment account?
For the NSE IFSC receipt route, the exchange describes this onboarding sequence. A provider’s exact forms, checks and funding instructions may differ.
- Choose an IFSCA-registered trading member. Confirm the contracting entity and the product it offers, rather than assuming every IFSC provider uses the NSE receipt structure.
- Complete account opening and documentation. The exchange’s process includes KYC and LRS documentation with the bank. Ask the trading member and authorised dealer bank which forms and supporting information they require.
- Arrange the LRS remittance. Follow the bank’s instructions for the permitted purpose and transfer currency. For the NSE route, the exchange says U.S. dollars are remitted to the trading member’s GIFT banking unit.
- Wait for the account to be credited. Do not place an order until the provider confirms the funds are available and explains any conversion or transfer steps.
- Check the instrument before placing an order. Verify its name and type, trading and settlement mechanics, applicable charges, and how to sell or withdraw proceeds.
How to compare a GIFT City account or product
Request the current account agreement, product documents and fee schedule. Compare the details below for the exact provider and instrument you plan to use.
| What to check | Questions to ask |
|---|---|
| Instrument and ownership | Am I buying a U.S.-listed security, an IFSC receipt, a fund unit or another claim? Who issues it, who holds the underlying asset, and what rights does my account give me? |
| Availability and dealing | Which U.S. stocks and ETFs can I actually trade? Are fractional orders available? What order types and trading hours apply, and can availability change? |
| Full cost | What are the brokerage, exchange or platform charges, FX spread, remittance costs, custody or inactivity fees, and sale or withdrawal charges? Ask for the current schedule, not just a headline fee. |
| Provider and account | Which legal entity contracts with me, what relevant registration does it hold, what KYC and funding steps apply, and how do I raise a complaint? |
| Liquidity and exit | How are orders matched and settled? What market depth is available? If the instrument is a receipt, what do its conversion, cancellation or termination terms say? How are proceeds withdrawn? |
| Tax and reporting | What reporting and tax treatment may apply to this specific asset and account in India or another relevant jurisdiction? What documents will the provider supply? |
Risks and tax questions to resolve before investing
NSE’s investor material identifies volatility, illiquidity, risks in the underlying share, receipt cancellation or termination, settlement issues, tax and changes in law as risks for its receipt route. These are product and market considerations to understand in the relevant documents; they are not a guarantee that every risk applies in the same way to every provider’s product.
There is no single tax outcome established here for all GIFT City routes. Treatment can depend on the investor’s status and the particular security, issuer, account and custody arrangement, as well as relevant Indian and foreign rules. Do not assume that a receipt, an ETF and a directly held U.S. share have identical tax or reporting consequences. Get current, jurisdiction-specific advice for the structure you will use.
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