How to Invest in US Stocks from India
The complete playbook for Indian investors: routes, platforms, taxes, costs, and why US stocks are just the beginning.
The US stock market accounts for roughly 44% of global market capitalisation. It is home to Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla. Over the past decade, the S&P 500 has delivered approximately 14% annualised returns in dollar terms. For Indian investors factoring in rupee depreciation, effective returns have been closer to 17-18% in rupee terms.
If you have been meaning to start investing in US stocks but felt unsure about the process, this guide walks you through everything: the legal framework, the available routes, the step-by-step process, costs, taxation, and the mistakes to avoid.
Yes, It Is Completely Legal
The Reserve Bank of India explicitly permits Indian residents to invest in foreign securities through the Liberalised Remittance Scheme (LRS). Each individual can remit up to $250,000 per financial year. No special approvals needed. No minimum income. Any Indian resident with a PAN card and a bank account can invest in US stocks legally.
4 Routes to US Stocks from India
Direct via Global Brokerage
Open an account, remit via LRS, buy US-listed stocks and ETFs directly. Direct ownership in your name.
India-Domiciled International MFs
SEBI-regulated feeder funds investing in US securities. Subject to $7B overseas cap, most schemes closed.
GIFT City (IFSCA)
IFSCA-regulated broker-dealers and funds. Not subject to SEBI cap. Indian regulatory oversight.
NSE IFSC Receipts
Receipts for ~50 US stocks on NSE IX at GIFT City. Limited universe, developing liquidity.
Your First US Stock Investment
Choose your platform
Evaluate regulatory status (own licence vs partner broker), markets offered (US-only vs global), fee structure (forex spread matters more than commissions), and tax reporting support.
Complete KYC and account setup
PAN, Aadhaar, bank statement, passport. Complete the W-8BEN form (establishes non-US tax status, reduces dividend withholding to 25% under DTAA). Takes 1-3 days.
Fund via LRS remittance
Initiate outward remittance from your bank. Purpose code S0001 for equity. Bank converts INR to USD. TCS of 20% collected above ₹10 lakh. Funds arrive in 1-3 business days.
Place your first trade
US markets: 7:00 PM to 1:30 AM IST. Start with a broad ETF (VOO, QQQ, or VTI) rather than individual stocks. Most platforms offer fractional shares.
Report and stay compliant
Disclose all holdings in Schedule FA. Report capital gains (STCG slab / LTCG 12.5%). Report dividends and claim Foreign Tax Credit via Form 67. Track TCS for adjustment.
Best ETFs for Indian Investors
For your first investment, consider a broad index ETF rather than individual stocks.
"Owning US stocks from India is now as straightforward as buying Reliance on Zerodha. The only barrier left is the decision to start."
Common Mistakes Indian Investors Make
Buying only recognisable names
Tesla, Apple, Amazon alone is not diversified. An S&P 500 ETF gives you 500 companies for the same effort.
Ignoring UCITS ETFs
For portfolios above $60,000, Ireland-domiciled UCITS ETFs avoid US estate tax (up to 40% above $60K) and offer better dividend withholding.
Timing the forex rate
The rupee has depreciated in 28 of the last 32 years. Invest systematically instead of waiting for a 'better' rate.
Not filing Schedule FA
Non-disclosure of foreign assets attracts penalties up to ₹10 lakh per year under the Black Money Act. Every holding must be reported.
Stopping at US stocks
US equities are the entry point. The real transformation happens when you add bonds for stability, REITs for income, and global ETFs for breadth.
Questions About US Stocks
US stocks are the beginning. Not the destination.
Valura is an IFSCA-registered broker-dealer offering Indian investors access to US stocks, global equities, ETFs, bonds, mutual funds, REITs, and pre-IPO opportunities. Start from as little as ₹10,000.