US stock market · for Indian investors
How to Invest in US Stocks from India
The phone in your pocket, the search engine you used this morning, the cola at the corner shop. Plenty of those companies are listed in New York, and an Indian resident can own a part of them legally. The catch is knowing the rules on sending money, tax and reporting. That part we teach properly.
- NYSE · Nasdaq
- Opens 7 PM or 8 PM IST
- Fractional shares
Why look beyond Dalal Street
What US shares add to an Indian portfolio
- $Dollar exposure
Your shares are priced in dollars. Over long stretches the rupee has drifted lower against the dollar, which has lifted rupee returns. That can reverse, so treat it as a feature, not a promise.
- 0.1Fractional shares
Some platforms sell a slice of a share. A pricey stock no longer needs a big cheque to get started.
- 11Sectors in the S&P 500
Chipmakers, drug companies, retailers, banks, media. Far more variety than any single market at home.
- 7 PMOpening bell in IST
During US summer time New York opens at 7 PM India time, long after the NSE has shut.
Four legal routes
Ways to own US stocks from India
You don’t have to open a foreign account to get US exposure. Each route below is legal; they differ on cost, control and paperwork.
Direct account abroad
Open an account with a US broker, or with an Indian platform that partners one. Shares sit with a US custodian in your name.
- Uses LRS
- Yes, under LRS
- TCS
- Above ₹10 lakh a year
GIFT City platforms
Brokers in GIFT City’s international financial centre offer US shares. Your money still leaves India under LRS.
- Uses LRS
- Yes, under LRS
- TCS
- Above ₹10 lakh a year
Indian funds of funds
Indian mutual funds that put money into US-focused funds. You invest in rupees and the fund handles the rest.
- Uses LRS
- No
- TCS
- None
US-index ETFs on NSE
ETFs that track US indices, bought in your demat during Indian hours. Check the gap between price and NAV before buying.
- Uses LRS
- No
- TCS
- None
Interactive · US market hours in IST
Wall Street runs on your evening
New York changes its clocks twice a year and India doesn’t, so the opening bell moves by an hour. Pick the season, then slide through an Indian evening.
- Opening hour
- Regular session
- Final hour
What you can own
A quick map of the US market
Six broad buckets cover most of what Indian investors look at. These are categories to study, not buy calls.
Technology
Software, cloud and semiconductor firms. This group carries a large weight in the main US indices.
Chip designers, cloud platformsHealthcare
Drug makers, medical device firms and insurers, with long research pipelines.
Pharma, medtechConsumer
Brands sold in supermarkets and online stores worldwide.
Retail, beveragesFinancials
Large banks, card networks, exchanges and asset managers.
Payments, lendersCommunication
Search, social media, streaming and telecom networks.
Media, telecomIndex ETFs
One purchase that holds hundreds of companies at once.
S&P 500, Nasdaq-100 trackers
Step by step
Six exits from your bank to a US share
- 1. Learn
Know how the exchanges, indices, order types and earnings season work before you move a single rupee.
- 2. Choose
Decide between a direct account, GIFT City, an Indian fund of funds or an NSE-listed ETF. Compare costs, custody and how easy it is to withdraw.
- 3. Open
Upload PAN, address proof and a selfie, then sign the W-8BEN form so the US applies the lower treaty rate on your dividends.
- 4. Fund
Your bank sends the money under the Liberalised Remittance Scheme, usually with Form A2. Ask about the exchange-rate markup and fixed charges.
- 5. Buy
Buy fully paid shares and hold them. LRS money cannot be used for margin or leveraged trading abroad.
- 6. Report
Report gains and dividends, file Form 67 to claim the US tax credit, and list your holdings in Schedule FA every year.
Interactive · Rupee returns
Two engines drive your return
What you finally earn in rupees depends on the stock and on the exchange rate. Move both sliders and watch how much of the result comes from each.
- TCS if this is your only LRS transfer this year
Ignores fees, dividends and tax. Practice numbers, not a forecast.
Tax, both sides
What the US takes, what India takes
In the United States
Light touch, with one big exception
- Capital gainsNot taxed in the US for most non-resident investors.
- Dividends25% withheld once your W-8BEN is on file, under the India-US treaty. Without it, 30%.
- Estate taxUS estate tax can apply to US shares above US$60,000 if the holder dies. Plan nominees and records.
In India
Your worldwide income counts
- Short-term gainsHeld 24 months or less: added to your income and taxed at your slab rate.
- Long-term gainsHeld over 24 months: 12.5% under current rules, with no indexation.
- DividendsTaxed at your slab rate. File Form 67 before your return to claim credit for the US tax.
- Schedule FAList every foreign holding in your ITR. It follows the calendar year, January to December.
- TCSCollected on LRS investment above ₹10 lakh a year. You get it back as a credit in your return.
Follow a $100 dividend
Read this first
Risks people underestimate
Currency swings
A weaker rupee adds to your returns. A stronger rupee eats into them.
Concentration
A few giant tech names carry a big share of the main indices. One bad quarter for them moves everything.
Overnight news
Results and Fed decisions often land while India sleeps. Prices can gap before you can react.
Hidden costs
Bank markups, transfer fees and platform charges hurt most when you send small amounts.
Estate rules
US estate tax and paperwork can trouble your family. Keep nominees and statements current.
Platform safety
Find out who holds your shares, which regulator watches them and what protection applies.
The 9AM programme
US stock investing course for Indians
Six modules, taught in New Delhi and live online, in English and Hindi. Fees on enquiry.
- 01
How Wall Street works
NYSE and Nasdaq, the S&P 500, Nasdaq-100 and Dow, the SEC and FINRA, order types and T+1 settlement.
- 02
Your route from India
Direct accounts, GIFT City, funds of funds and NSE ETFs, compared on cost, custody and exit.
- 03
Paperwork without stress
KYC, W-8BEN, Form A2, LRS limits, TCS and the questions to ask your bank.
- 04
Reading US companies
10-K and 10-Q filings, earnings calls, guidance, sector maps and valuation basics.
- 05
Charts after dark
Technical analysis on US stocks, earnings gaps, pre-market moves and the Fed calendar.
- 06
Tax and reporting at home
Capital gains, dividends, Form 67, Schedule FA and the records your CA will ask for.
New to markets? Start with our Fundamental Analysis or Technical Analysis course. Curious about the Gulf too? Read how to invest in the Dubai stock market from India, or compare Indian brokers.
Questions
US stocks from India: FAQs
Is it legal for Indians to invest in US stocks?
Yes. Resident Indians can buy foreign shares under the RBI's Liberalised Remittance Scheme, through an authorised bank and a regulated broker. Indian mutual funds and NSE-listed ETFs that hold US stocks are another legal route.
How much can I invest in US stocks from India?
Up to US$250,000 per person in a financial year under LRS. That limit covers all LRS spending together, including foreign travel and gifts.
Is there a minimum amount to start?
Many platforms offer fractional shares, so the share price is not a barrier. Fixed bank charges, though, make very small transfers expensive, so fewer and larger transfers usually work out cheaper.
Is TCS charged when I send money to buy US shares?
Yes. Banks collect TCS of 20% on investment remittances above ₹10 lakh in a financial year, as per current rules. It is not an extra tax; you claim it as a credit when you file your return.
What is the W-8BEN form?
A US tax form that confirms you are not a US person. It lets the broker apply the India-US treaty rate of 25% on dividends instead of 30%. It usually needs renewing every three years.
How are US stock gains taxed in India?
Gains on shares held over 24 months are taxed at 12.5%. Gains on shares held for 24 months or less are added to your income and taxed at your slab rate.
Do I pay tax in the US on my profits?
Most non-resident investors pay no US tax on capital gains. Dividends are taxed in the US at source, and you claim that tax as a credit in India using Form 67.
What time does the US stock market open in India?
The regular session runs 9:30 AM to 4 PM New York time. That is 7 PM to 1:30 AM IST during US summer time (March to November) and 8 PM to 2:30 AM IST in winter.
Can I trade options or use margin in the US with LRS money?
No. LRS money cannot be used for margin trading or margin calls abroad. Stick to fully paid, delivery-based investing.
Do I have to report US shares in my ITR?
Yes. Every foreign holding goes into Schedule FA, along with dividends and gains in the right schedules. Leaving them out can attract heavy penalties under the Black Money Act.
Does 9AM teach how to invest in US stocks?
Yes. We teach how US markets work, which legal routes exist from India, how to read US companies and charts, and how to stay tax compliant. We do not open accounts or give stock tips.
Learn the rules before you ring the bell
Sit in on a free demo class and map out your own route to Wall Street.
Disclaimer: 9AM Traders Academy provides market education only. We are not a SEBI-registered investment adviser, do not open overseas accounts and do not give tips or recommendations. Sectors and indices are mentioned for learning. LRS, TCS and tax rules change; confirm the current position with your bank and a chartered accountant. Numbers in the tools are illustrations.