Trading and investing platform Dhan on Friday launched investment access to US-listed stocks and exchange-traded funds (ETFs) for Indian investors through the GIFT City framework.
The offering is being provided through Raise IFSC Private Limited, Dhan’s wholly-owned subsidiary and a member of India INX operating under the regulatory framework of the International Financial Services Centres Authority (IFSCA).
In a statement, the company said Indian investors can now invest in stocks listed on the Nasdaq and NYSE through the Dhan app under a structure aligned with RBI and FEMA requirements.
Dhan has partnered with ViewTrade for brokerage services and GlomoPay for payment technology services to facilitate investments in US securities.
The platform will not charge account maintenance or custody fees, while brokerage has been fixed at 0.25 per cent of the transaction value.
Investors will also have access to features, such as systematic investment plans (SIPs) in US stocks and ETFs, super orders, and portfolio tracking tools.
“We are excited about presenting Dhan investors the opportunity to invest in global companies and brands that shape our daily lives. Investing internationally in US stocks had lacked clarity and direction until recent times. Dhan solves the same for Indian investors by offering US investing via the IFSC GIFT City route,” Dhan founder and CEO Pravin Jadhav said.
According to the company, the US market offers investment opportunities across sectors, such as technology, artificial intelligence, semiconductors, healthcare and consumer businesses, along with globally tracked ETFs.
Trading in derivatives will not be permitted at this stage, it added.
Dhan said fund transfers have been integrated with leading Indian banks to enable compliant movement of money into investors’ US investment accounts, with additional banking partnerships expected over time.
Dividend income from US investments will be subject to withholding tax under the Double Taxation Avoidance Agreement (DTAA) framework, and capital gains will be taxed in accordance with Indian tax regulations, the company said.
On Thursday, SAMCO Securities announced the launch of its global investing platform after receiving a broker-dealer licence from the IFSCA at GIFT City, enabling Indian investors to invest in US-listed stocks and ETFs.