The Daily Brief India prepares to invest in US stocks
10 snips
Mar 5, 2026 A new route for Indians to buy US stocks via Gift City and how the GAP framework and broker-dealer model will change trading mechanics. The show contrasts US market-maker execution and payment-for-order-flow with India's exchange-driven setup. A deep look at India's Dedicated Freight Corridors, their upgrades, capacity gains, and the remaining infrastructure gaps affecting modal shift.
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India Adds A Domestic Regulatory Layer For US Stock Trades
- NSE International Exchange's Global Access routes Indian orders through Gift City under IFSCA using ViewTrade as the licensed partner.
- Money now goes to a designated Gift City bank account, converts to dollars there, then trades on US markets under LRS limits up to Rs 2.3 crore per year.
Why Indian Markets Send Every Retail Order To The Exchange
- Indian exchanges use an order-driven system where every retail order must go to the exchange's central order book.
- Brokers act only as agents and cannot internalize or match customers internally, ensuring transparent price discovery and time-priority matching.
How US Retail Orders Often Trade Off Exchange
- US brokers often route retail orders to wholesale market makers like Citadel instead of exchanges and may act as principals or send orders to third parties.
- This enables payment for order flow: brokers get paid and offer zero commissions plus tiny price improvements while wholesalers capture the spread.