Two questions sit behind most hesitation about investing abroad, and they are different questions. Is it legal? is about Indian regulation. Is it safe? is about what happens to your shares if an intermediary fails. The legal basis is clear. The custody chain has more links than an Indian demat account, and each link is a risk worth understanding before you invest.
Is it legal? Yes, and here is the specific basis
The Reserve Bank of India's Liberalised Remittance Scheme permits resident individuals to remit up to USD 250,000 per financial year for a defined list of permitted purposes. Investment in overseas equity is one of them.
This is not a grey area or a loophole. It is an explicit scheme with a stated limit, a prescribed remittance process through authorised dealer banks, and a reporting framework in the Indian tax return.
Two tax obligations come with it:
- TCS is collected by your bank on remittances above ₹10 lakh cumulative per PAN in a financial year. See TCS on LRS Remittances.
- Schedule FA disclosure of the foreign holdings in your annual return, whether or not you made a gain. See Schedule FA.
An investor who remits within the limit and discloses correctly is doing something entirely ordinary and entirely legal.
Who regulates the account
Accounts opened through Platizio Global are held with ViewTrade IFSC, regulated by the International Financial Services Centres Authority in GIFT City.
IFSCA is a unified regulator established by statute to oversee financial services in India's international financial services centre. ViewTrade IFSC, which holds the account, is registered with IFSCA as a broker-dealer and authorised as a Global Access Provider, so IFSCA supervises ViewTrade IFSC. This does not make Platizio an IFSCA-regulated entity, and regulation does not protect you against investment losses.
It is worth being precise about what this is: an IFSC-regulated account, not a standard US brokerage account. The distinction matters for how custody works, which is the next question.
Where your shares actually sit
This is the part that deserves a direct answer rather than reassurance.
Your US shares are held in the name of ViewTrade IFSC for the benefit of its customers (an omnibus account), not in your individual name. ViewTrade IFSC holds them in the US through ViewTrade Securities Inc., and US shares settle at The Depository Trust Company (DTC), the central securities depository (part of DTCC). Platizio does not hold securities or client money.
This surprises investors used to Indian demat accounts, where holdings sit in the individual's own name. The custodian holds them on customers' behalf; it does not own them. The benefit of the account still belongs to you as the end client; which shareholder rights pass through to you is governed by ViewTrade's and the custodian's terms.
What happens if the broker fails
ViewTrade IFSC is not a SIPC member. Where investor protection coverage is available through a foreign broker, clearing broker or custodian, such coverage is subject to that provider's terms and exclusions. SIPC protects against the failure of a brokerage firm; it does not protect against a fall in the market value of your investments.
Being precise about what SIPC does and does not cover matters:
| Where SIPC applies, it covers | SIPC does not cover |
|---|---|
| Failure of the brokerage firm | A fall in the market value of your investments |
| Missing securities or cash in a failed firm's accounts | Bad investment decisions |
| Return of your assets, up to SIPC's limits | Currency movements against you |
SIPC is insolvency protection, not investment protection. If you buy a share and it falls 40%, that is your loss and no scheme covers it. That is true of every market, including India's.
The risks to weigh
Having set out the legal basis and the custody chain, these are the risks to weigh before you invest.
- Market risk. US shares can and do fall. Nothing about the structure changes that.
- Custody. Your shares sit with a chain of intermediaries, ViewTrade IFSC and its US broker; if one fails, you could lose money.
- Legal. US trades are governed by US law, and IFSC stock-exchange investor-protection and dispute-resolution mechanisms do not apply.
- Currency risk. A stronger rupee reduces returns in rupees. Your return combines the asset's performance with rupee–dollar movement, and the two can pull in opposite directions. See Currency Risk Explained.
- Concentration risk. The US market is heavily weighted towards a small number of very large technology companies. Broad-index exposure is less diversified than the number of holdings suggests.
- Tax complexity. More forms and more schedules than a purely domestic portfolio. Manageable, but not automatic. See Tax on US Stocks in India.
- US estate tax. Above a USD 60,000 threshold, US-situs assets can attract estate tax at rates up to 40%, and India has no treaty relief on this. Relevant to larger portfolios. See US Estate Tax for Indian Investors.
Questions worth asking any provider
Whoever you invest through, these are the questions that separate a clear answer from a vague one:
- Who regulates the entity holding my account, and under what licence?
- In whose name are the securities custodised, and with which depository?
- What protection applies if the broker fails, and what does it exclude?
- What is the full cost of a remittance, including forex markup?
- What happens if I want to move my holdings elsewhere, or exit entirely?
Platizio Global's answers to these are on the FAQ page.
Conclusion
Investing in US stocks from India is legal under the RBI's Liberalised Remittance Scheme. The account sits with ViewTrade IFSC, an IFSCA-registered broker-dealer; the shares are held in the US for the benefit of customers; and SIPC, where it applies, protects against a broker's failure, not against a fall in market value. The risks to weigh are currency, custody through several intermediaries, tax and market risk.
Sources8
- Reserve Bank of India: Master Direction – Liberalised Remittance Scheme (updated 6 September 2024) — https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10192
- Reserve Bank of India: Liberalised Remittance Scheme FAQs — https://www.rbi.org.in/Scripts/FAQView.aspx?Id=115
- Reserve Bank of India: Remittances to IFSCs under the LRS, A.P. (DIR Series) Circular No. 03 (26 April 2023) — https://rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=12494
- Income Tax Department — Section 394, Income-tax Act, 2025 (TCS) — https://www.incometaxindia.gov.in/w/section-394-6
- Income Tax Department: Section 206C, Income-tax Act, 1961 (sub-section (1G): TCS on LRS remittances to 31 March 2026) — https://www.incometaxindia.gov.in/w/section-206c-39
- Income Tax Department: Step-by-Step Guide to Fill FSI, TR and FA Schedule in ITR — https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-03/Step%20by%20Step%20Guide%20FA%20FSI.pdf
- Internal Revenue Service: Some nonresidents with U.S. assets must file estate tax returns — https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-us-assets-must-file-estate-tax-returns
- US SEC (Investor.gov) — Investor Bulletin: SIPC Protection, Part 1 — https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/investor-bulletin-sipc-protection-part-1-sipc-basics
Disclaimer: This article is for educational purposes only and is not investment, tax, or legal advice. Regulatory and protection details are stated as of August 2026 and can change. Where SIPC protection applies, it is subject to SIPC's rules and limits. Please read our Risk Disclosure and Disclaimer and consult a qualified professional before investing.