Why IPO access is restricted 

Indian investors cannot participate in IPOs in the US market directly, but they can buy these stocks once they list on the exchanges. 

“Primary-market allocations are routed through underwriting syndicates that largely serve US institutions and a few domestic retail channels controlled by banks. Indian investors using the LRS route access US markets through a partner broker that does not sit in the IPO allocation chain,” says Viram Shah, founder and chief executive officer (CEO), Vested Finance. 

Why use foreign investment platforms 

Indian mutual funds investing abroad share an industry-wide cap of $7 billion and a separate $1 billion cap for overseas ETFs. Several large…