Is it legal to directly invest in US stocks from India?
Yes, it is completely legal for Indian residents to invest in the US stock market. Many Indians are choosing to invest in US stocks, and it’s become a popular way to diversify portfolios. Under the RBI's Liberalized Remittance Scheme (LRS), Indian residents can invest in foreign assets, including US stocks, with a limit of up to $250,000 per financial year.
While there is significant potential for growth and diversification, it is important to note that international markets carry similar risks to those of the Indian stock market. Investing in US stocks is a great way to expand your portfolio, gain exposure beyond Indian markets, and potentially benefit from currency appreciation.
For more details, you can check our blog on LRS or see the official RBI guidelines (Article 6(iii) on equity investments).
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