Zerodha has launched US stock investing in beta on its Kite platform, allowing eligible Indian resident investors to buy shares of up to 2,000 US-listed companies and access around 1,000 exchange-traded funds (ETFs) without opening a separate account. The new feature brings international investing into the platform that users already use to manage their Indian market investments.
The service is currently available on Kite Web in beta, according to Zerodha's official support documentation. Investors can buy eligible US stocks and ETFs, including fractional shares, using a linked US dollar wallet funded from their Indian bank account.
The launch gives Zerodha users another route to diversify their portfolios internationally. However, the service comes with eligibility restrictions, foreign exchange costs, tax obligations and limits on the types of trades investors can place.
How Zerodha’s US Stock Investment Feature Works
Zerodha routes investments through BSE's India INX Global Access platform at GIFT City, Gujarat's International Financial Services Centre (IFSC). Investors activate the US stocks segment through their existing Zerodha account, complete the required checks and transfer money from their linked Indian bank account to the Global wallet.
The platform supports fractional investing, allowing users to buy a portion of an eligible share rather than paying for a full share. For example, a $300 stock could be purchased in a $75 allocation, representing 0.25 shares before applicable charges and currency conversion.
Who Can Invest Through Zerodha?
The service is available to resident Indian individuals with eligible accounts. Non-Resident Indians (NRIs), joint accounts, Hindu Undivided Families (HUFs), companies, limited liability partnerships and partnership firms are not eligible under the current rules.
Zerodha says the available universe includes up to 2,000 US listed companies and around 1,000 ETFs with assets under management above $250 million. The actual instruments available to an investor may depend on platform eligibility and other applicable restrictions.
Trading Rules, Market Timings and Charges
US stock investing through Zerodha is delivery based. Intraday trading, margin trading and US IPO applications are not supported. The company says stop loss functionality is planned through Good Till Triggered (GTT) orders.
Orders can be placed outside US market hours, but execution depends on the relevant trading session and order conditions.
US market timings in Indian Standard Time
Daylight Saving Time - 7:00 PM-1:30 AM
March to October, subject to US market calendar
Standard Time - 8:00 PM - 2:30 AM
November to March, subject to US market calendar
Regular NYSE and Nasdaq trading hours. The closing time falls on the following Indian calendar day.
Zerodha's published pricing lists brokerage at 0.1% of the transaction value or $10, whichever is lower. Investors should also check applicable currency conversion, transfer, regulatory and tax-related costs before investing.
What Indian Investors Should Know About Tax and Compliance
Investments in US shares are subject to India's Liberalised Remittance Scheme (LRS) and relevant foreign investment rules. The applicable annual remittance limit is $250,000 per resident individual, subject to RBI conditions and permitted purposes.
Tax treatment differs between capital gains and dividends. Resident Indian investors generally need to report foreign assets and relevant income in their income tax returns. US dividends may attract withholding tax, with relief potentially available under the India-US Double Taxation Avoidance Agreement (DTAA) and applicable foreign tax credit rules.
Zerodha's guidance says investors may need ITR-2 or ITR-3, depending on their circumstances, and must disclose foreign holdings in Schedule FA where applicable. Investors should consult the latest tax rules or a qualified tax professional rather than assume that the DTAA removes every US tax obligation.
Why the Launch Matters for Zerodha
The launch puts global investing closer to the everyday investing experience for Zerodha's Indian customers. Instead of using a separate platform for US equities, eligible users can manage their international holdings alongside their existing investments on Kite.
For Zerodha, the move also expands its product offering beyond the domestic brokerage market. For investors, fractional ownership lowers the initial dollar amount needed to buy into an expensive stock, although it does not remove market risk or currency risk.
The key question now is how the service develops beyond beta, including the rollout of mobile access, additional order types and the overall cost of investing internationally.
The Unicorn Magazine:- Editing by Deepak Singh
