Nearly 200 entities have registered under GIFT City's Global Access model, with brokers accounting for the majority of these participants. This framework streamlines overseas investing for Indians under the RBI's Liberalised Remittance Scheme. Regulators are now exploring the direct listing of international ETFs on IFSC exchanges, a move that could simplify access further for retail investors.
Nearly 200 entities are now registered under the Global Access model at GIFT City, a significant hub for India's international financial operations. Data released by the International Financial Services Centres Authority (IFSCA) shows that brokers and financial intermediaries account for 60% to 70% of these registrations. This milestone reflects the rapid growth of the framework, which was revamped about 18 months ago to create a safer, regulated path for Indian residents and Non-Resident Indians to invest in global markets.
The Global Access model operates within the guidelines of the Reserve Bank of India's Liberalised Remittance Scheme. Under this scheme, eligible individuals can remit up to $250,000 annually for international investments. By moving these transactions through the GIFT City ecosystem, investors gain a layer of official oversight and compliance that was often missing when using offshore platforms directly. Firms such as SAMCO Securities and INDmoney are among the active players on this platform, acting as the primary bridge for Indian clients looking to access U.S. stocks, international Exchange Traded Funds, and other diverse financial products.
While the current model relies on brokers to facilitate these investments, the IFSCA is actively discussing a new phase of development: the direct listing of international ETFs on GIFT City exchanges. If this initiative is successful, Indian investors would be able to purchase units of global funds using domestic infrastructure, effectively bypassing the need to route investments through foreign brokers. This potential shift is part of a broader goal to offer a wider variety of investment choices, including thematic strategies, fixed income, and multi-asset portfolios.
Despite the advantages of a regulated platform, investors should be mindful of the inherent risks associated with international investing. Currency risk is a major factor; because these investments are denominated in foreign currencies, any depreciation in the Indian Rupee against those currencies can impact the final returns. Additionally, investors must strictly follow all RBI guidelines regarding the Liberalised Remittance Scheme. Failure to stay within these limits or comply with tax reporting requirements can lead to regulatory complications.
Investors should also consider the operational reality of cross-border investing. Even with a regulated gateway, the settlement process relies on international clearing and custody institutions, which adds a layer of complexity compared to domestic stock trading. Looking ahead, market observers will monitor the implementation timeline for direct ETF listings. Furthermore, the industry is awaiting potential updates regarding the tax treatment of outbound-focused funds and Alternative Investment Fund structures, which are expected to be addressed in future budget announcements.