Several platforms now allow Indian investors to buy foreign stocks and exchange-traded funds (ETFs) through the Liberalised Remittance Scheme (LRS) route. Investors should undertake considerable due diligence while selecting a platform.

Why IPO access is restricted

Indian investors cannot participate directly in IPOs in the US market, but they can buy these stocks once they are listed on 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,…