How NRIs Can Invest in GIFT City IPOs

A common mistake we see NRIs make? They hear about a GIFT City IPO, get excited, and then realise they can't apply.

Not because they're ineligible. But because they never set up the right accounts.

Unlike domestic Indian IPOs, you can't use your regular demat or NRE savings account. The GIFT City IFSC is a separate financial ecosystem.

The IFSC is a separate financial ecosystem. It needs its own broker, its own bank account, and its own KYC.

We've walked hundreds of NRIs through this at Belong.

The process is straightforward once you know the steps. It takes about two to four weeks to get fully set up. But if you wait until an IPO opens, you'll miss it.

This guide walks you through every step. From choosing a broker to funding your account.

From applying to receiving your allotment. Every regulation. Every document. Every detail that matters.

The GIFT City IPO Ecosystem: A Quick Context

Before we talk process, you need to understand where you're investing. GIFT City is not the same as BSE or NSE.

GIFT City IFSC is India's first International Financial Services Centre. It sits in Gandhinagar, Gujarat. Under FEMA regulations, it's treated as "foreign territory" for financial purposes.

Two stock exchanges operate here. NSE International Exchange (NSE IX) and India International Exchange (India INX).

Both are regulated by the International Financial Services Centres Authority (IFSCA).

All trading happens in foreign currencies. USD, EUR, GBP, and others. No rupee conversion at any stage. Shares are priced, traded, and settled in dollars.

India's first GIFT City equity IPO launched in March 2026. XED Executive Development raised $12 million in a dollar-denominated offering, per NSE IX's announcement. IFSCA is targeting 25 to 30 IPOs by 2030.

👉 Tip: GIFT City IPOs are governed by the IFSCA (Issuance and Listing of Securities) Regulations, 2021, updated in October 2025. These are different from SEBI's IPO rules for domestic markets.

Who Is Eligible to Invest?

This is the first thing to confirm. Get this wrong and nothing else matters.

You can invest if you are:

An NRI (Non-Resident Indian) living anywhere in the world. An OCI (Overseas Citizen of India) cardholder. A Foreign Portfolio Investor (FPI) registered with IFSCA. An institutional investor or other permitted overseas participant under the IFSCA framework.

You cannot invest if you are:

A resident Indian. Resident Indians are not eligible for GIFT IFSC equity listings. This is exclusively a non-resident avenue, per IFSCA's listing regulations.

Not sure about your status? Check our guide on NRI residential status. Your status under the Income Tax Act and FEMA can differ. FEMA status is what matters for GIFT City.

👉 Tip: If you left India more than 182 days ago for employment or business, you likely qualify as an NRI under FEMA. But verify this before investing. Status errors can create compliance problems.

Step 1: Choose an IFSC-Registered Broker

This is where most NRIs stumble. Your regular Zerodha, Groww, or ICICI Direct domestic account won't work.

You need a broker specifically licensed to operate on NSE IX or India INX inside GIFT City. Many large Indian brokerages have separate IFSC subsidiaries. These are legally distinct entities from their domestic arms.

Some brokers with GIFT City IFSC presence include Anand Rathi, HDFC Securities, and ICICI Securities. They operate through dedicated IFSC units with separate trading platforms.

When choosing a broker, check these things. Is the broker registered with IFSCA? What currencies do they support? Do they offer digital onboarding for NRIs abroad? What are their brokerage charges for IPO applications?

The trading platform will also be different from domestic apps. You'll access a separate web-based terminal or dedicated IFSC app. Don't expect to use the same mobile app you use for BSE/NSE trades.

Step 2: Open a GIFT City Bank Account

You need a foreign currency account at an IFSC Banking Unit (IBU). Think of an IBU as a special branch of an Indian bank. It operates under IFSCA rules instead of RBI rules.

Major banks with IBUs in GIFT City include HDFC Bank, ICICI Bank, SBI, IDFC FIRST Bank, and others. They offer Global Savings Accounts in multiple currencies: USD, EUR, GBP, AED, CAD, AUD, SGD, and HKD.

This account serves two purposes. It holds the funds you'll use to apply for IPOs. It also receives any refunds if you don't get allotment, or dividends after listing.

Our detailed guide covers the full process: How to open a GIFT City account.

One key advantage? Joint accounts and nomination facilities are available. But joint accounts with resident Indians are generally not allowed. It would compromise the foreign currency status of the account.

👉 Tip: Compare IBU offerings before committing. Interest rates, minimum balance requirements, and digital capabilities vary widely across banks. ICICI Bank IBU, for example, allows deposits in eight currencies with tenures from 7 days to 39 months.

Step 3: Complete Your KYC

KYC for GIFT City is simpler than domestic Indian KYC. IFSCA follows global standards, not the PAN-Aadhaar framework most NRIs dread.

Documents you'll need:

Valid passport (with at least six months validity). Overseas address proof (utility bill, bank statement, or driving licence). Visa or work permit copy. Recent photograph. PAN card (for certain transaction types, though not always mandatory).

IFSCA introduced video-based KYC (V-CIP) in 2025. This changed everything. You can complete KYC from your living room in Dubai, London, or New York. No embassy visits. No notarised document couriers. No flying to India.

Video KYC is currently available for NRIs in the UAE, US, UK, Canada, and Singapore. This is per IFSCA guidelines reported by Belong's GIFT City account guide.

Some brokers and banks still require physical document verification for higher investment tiers. Check with your specific broker before you start.

👉 Tip: Start KYC now, even if no IPO interests you today. Account setup takes two to four weeks end to end. Be ready before the next opportunity opens.

Step 4: Fund Your GIFT City Account

Once your account is active, you need to transfer funds. Here's where GIFT City shines for NRIs.

Funding from overseas bank accounts:

Wire transfer from your UAE, US, UK, or other overseas bank directly to your GIFT City IBU account. This is a non-resident to non-resident transfer under FEMA. No LRS limits apply. No Form 15CA/CB needed.

Funding from NRE accounts:

You can also transfer from your NRE account in India to your GIFT City account. Since both are treated as non-resident accounts under FEMA, the transfer is straightforward.

Funding from NRO accounts:

NRO transfers to GIFT City are more complex. NRO funds are considered resident funds. Transferring them requires compliance with RBI's repatriation norms. This route is slower and less preferred.

For most NRIs, the cleanest path is a direct wire from your overseas bank. Dubai-based NRIs can send AED and have it credited in USD. UK NRIs can send GBP. The IBU handles the conversion.

Keep your transfer receipts. You'll need them for audit trails and tax documentation in your country of residence.

Step 5: Open a Demat Account at GIFT City

Shares from a GIFT City IPO are held in dematerialised form. You need a demat account with a depository participant registered at IFSC.

This is typically bundled with your broker account. When you open a trading account with an IFSC broker, they'll set up the demat account simultaneously.

Your GIFT City demat is separate from any domestic demat you hold with CDSL or NSDL. The shares you buy on NSE IX or India INX sit in this IFSC-specific demat.

This separation is actually helpful. It keeps your GIFT City investments distinct from domestic holdings. Tax reporting becomes cleaner. Repatriation is simpler.

Step 6: Apply During the IPO Window

With accounts ready, here's how the actual application works.

GIFT City IPOs can remain open for up to 10 working days. Compare that to domestic Indian IPOs that close in three days. This longer window gives you more time to research and decide.

IFSCA IPOs follow a book-building process similar to domestic ones. There's a price band. You place a bid within that range. If the final issue price is lower than your bid, you get shares. If not, your money is refunded.

For XED Executive Development (India's first GIFT City IPO), the price band was $10 to $10.5 per share. This was per official filings. The subscription window ran from March 6 to March 18, 2026.

How to place your bid:

Log into your IFSC broker's trading platform. Navigate to the IPO section. Select the offering. Enter your bid quantity and price. Submit.

Your broker will block the funds in your GIFT City bank account. If allotted, the shares appear in your IFSC demat. If not, the funds are released back.

👉 Tip: Read the Red Herring Prospectus (RHP) before applying. It contains audited financials, risk factors, and use-of-proceeds details. IFSCA requires disclosures in IFRS or US GAAP standards, making them familiar for NRIs used to international reporting.

What It Costs: Fees and Charges

Let's talk numbers. GIFT City IPOs come with a different cost structure than domestic ones.

What you don't pay:

No Securities Transaction Tax (STT). No Commodity Transaction Tax (CTT). No stamp duty. No GST on IFSC transactions. These exemptions apply to all trading on GIFT City exchanges.

What you do pay:

Brokerage fees set by your IFSC broker. These vary. Some charge a flat fee per transaction. Others charge a percentage. Demat account maintenance charges (annual). Bank transfer fees for wiring money to your IBU.

The absence of STT alone saves significant money. On domestic exchanges, STT on equity delivery is 0.1% of transaction value. Over time, this adds up.

IFSCA also commits to processing draft IPO observations within 21 days. This makes the regulatory pipeline faster and cheaper for issuers. Lower costs for companies often mean better pricing for investors.

Tax Implications by Country

Tax is the question every NRI asks first. The answer depends on where you live.

At the GIFT City level:

Capital gains on specified securities traded on IFSC exchanges are exempt from Indian tax for non-residents. No STT or stamp duty applies. Dividends from IFSC units attract a concessional 10% rate plus surcharge and cess. Read our detailed guide on GIFT City tax benefits.

For UAE-based NRIs:

The UAE has no personal income tax. Combined with GIFT City's Indian tax exemptions, this creates a near-zero-tax outcome on many investments. This is one reason GIFT City mutual funds for tax-free returns are popular among Gulf NRIs.

For US-based NRIs:

The US taxes global income. Your GIFT City IPO gains must be reported to the IRS. FBAR filing may apply if your GIFT City account balance exceeds $10,000 at any point. FATCA reporting obligations also kick in. Consult a US-India cross-border tax advisor.

For UK-based NRIs:

UK residents pay capital gains tax on worldwide gains. GIFT City gains are not exempt in the UK. Check if India-UK DTAA provisions apply to your situation.

👉 Tip: Tax-free in GIFT City does not mean tax-free everywhere. Always check your tax obligations on investments in your country of residence before committing capital.

How GIFT City IPOs Differ from Domestic Indian IPOs

If you've applied for Zomato, Ola, or Hyundai IPOs on BSE/NSE, forget that process. GIFT City works differently.

Account requirements:

Domestic IPOs need a PAN-linked demat, NRE/NRO bank account, and often PIS (Portfolio Investment Scheme) permission from RBI. GIFT City IPOs need an IFSC demat, GIFT City bank account, and IFSC broker. No PIS required.

Currency:

Domestic IPOs work in rupees. GIFT City IPOs work in USD, EUR, or GBP. Your investment stays in foreign currency from application to exit.

Subscription window:

Three days for domestic IPOs. Up to ten working days for GIFT City IPOs.

Trading hours:

Domestic exchanges run roughly 6.5 hours. GIFT City exchanges operate nearly 22 hours daily, syncing across London, New York, and Singapore time zones.

Available companies:

Domestic IPOs offer a wide range. India's IPO market may raise Rs 3.5 to 4 lakh crore in 2026. GIFT City is just starting, with its first offering in March 2026. Expect this to grow to 25 to 30 IPOs by 2030.

For a broader comparison of GIFT City vs domestic investments, read our guide on GIFT City vs traditional NRE/NRO investments.

A Worked Example: Applying for a $5,000 IPO Allocation

Let's walk through a realistic scenario. Suppose you're an NRI in Dubai. A GIFT City IPO opens with a price band of $10 to $10.5 per share. You want to invest $5,000.

Week 1 to 2 (before the IPO opens): You open an IFSC trading and demat account with a registered broker. You complete video KYC using your passport and Emirates ID. You wire AED 18,500 (roughly $5,040 at typical rates) from your UAE bank to your GIFT City IBU account.

Day 1 of the IPO: You log into your IFSC broker's platform. You bid for 476 shares at $10.5 per share ($4,998 total). The broker blocks this amount in your GIFT City bank account.

Allotment day (typically 3 to 5 days after close): You receive 476 shares (or fewer, if oversubscribed). If you don't get full allotment, the balance is refunded to your IBU account. No rupee conversion happens at any stage.

Listing day: Shares begin trading on NSE IX and India INX. You can hold for the long term or sell on the exchange. Proceeds remain in USD in your GIFT City account.

Tax outcome: If you're a UAE resident, no Indian capital gains tax applies on IFSC securities. No UAE income tax applies either. Your $5,000 grows entirely tax-free (subject to applicable regulations at the time of transaction).

👉 Tip: Start with a smaller amount to test the system. Many NRIs find it helpful to do a trial transfer of $500 to $1,000 first. This confirms that your banking, broker, and demat connections work smoothly.

What Most Blogs Miss: Five Pitfalls to Avoid

We've guided many NRIs through GIFT City investments. Here are five real problems we've seen.

1. Using the wrong bank account.

Your Emirates NBD savings account cannot directly apply for a GIFT City IPO. You must fund through an IBU account. Transfers take one to three business days. Plan ahead.

2. Mixing up domestic and IFSC demat accounts.

Your CDSL demat for BSE/NSE trades is completely separate. Shares cannot move between the two systems. Treat them as two different worlds.

3. Ignoring liquidity risk.

GIFT City's equity market is brand new. Trading volumes will be thin. Don't assume you can sell quickly at your desired price. The IFSCA Market Making Programme (2025 to 2030) aims to improve this. But early investors should plan for longer holding periods.

4. Forgetting tax reporting in your country.

Many UAE NRIs assume zero tax everywhere. That's true today. But if you move back to India, your RNOR or resident status changes your tax picture entirely. Track your investments carefully. Avoid common NRI investment mistakes.

5. Waiting too long to set up accounts.

KYC, bank account, broker registration, and test transfers take two to four weeks. If you hear about an IPO and start the process that day, you'll miss the subscription window.

Evaluating a GIFT City IPO: A Quick Checklist

Not every offering deserves your money. Use this framework before investing.

Revenue quality: Does the company have at least $20 million in annual revenue? IFSCA's minimum threshold exists for a reason. Check if revenues are growing or stagnant.

Profitability: IFSCA requires at least $1 million pre-tax profit. But look deeper. Is the profit sustainable? Is it driven by core operations or one-time gains?

Business model clarity: Can you explain what the company does in two sentences? If the prospectus confuses you, that's a red flag.

Comparable valuation: How does the IPO price compare to similar companies globally? Use the price-to-earnings ratio of listed peers as a benchmark.

Institutional interest: Check the anchor investor allocation. Strong anchor demand from known institutions signals confidence. Low institutional interest is a warning sign.

Promoter track record: Who runs the company? What's their history? Have they built and scaled businesses before?

Beyond IPOs: Building Your GIFT City Portfolio

IPOs are exciting but they're just one piece. If you're setting up GIFT City accounts anyway, explore the full ecosystem.

Mutual Funds: Multiple AMCs now offer GIFT City mutual funds in foreign currencies. The Tata India Dynamic Equity Fund launched in September 2025 with just $500 minimum.

For global diversification, consider the DSP Global Equity Fund. The Edelweiss Greater China Equity Fund offers China exposure. Mid-cap India lovers can explore the Sundaram India Mid Cap Fund.

Browse all options using the mutual funds explorer or learn about NRI mutual fund products.

Alternative Investment Funds: Minimum investment dropped to $75,000 in February 2025. AIFs offer exposure to private equity, venture capital, and real estate that mutual funds don't touch.

Explore options on the AIF explorer or read about investing in AIFs.

Fixed Deposits: USD-denominated FDs through GIFT City IBUs offer stable, tax-free returns. No currency risk. Compare rates using the NRI FD rates tool.

Global Equities: NSE IX allows you to buy US stocks (Apple, Amazon, Tesla) via Unsponsored Depository Receipts. No US brokerage account needed.

Track market movements and stay updated using the GIFT Nifty tracker.

Repatriation: Getting Your Money Back

This is the fear NRIs never say aloud. "What if I put money in and can't get it out?"

GIFT City eliminates this worry by design. Since it's treated as foreign territory under FEMA, funds held here are fully repatriable. No Form 15CA/CB needed. No CA certificates required.

Your money moves as freely as a London-to-New-York wire transfer.

When you sell IPO shares on NSE IX or India INX, proceeds land in your GIFT City bank account.

They arrive in USD or your chosen currency. From there, you can transfer to your overseas bank without RBI approval.

This is fundamentally different from domestic Indian investments. Selling shares on BSE/NSE and repatriating proceeds through NRE/NRO accounts involves paperwork and tax clearances. It sometimes takes weeks of waiting.

👉 Tip: Keep records of your original investment, sale proceeds, and transfer receipts. Some countries require proof of capital source when large amounts arrive in your overseas bank.

Country-Specific Considerations

UAE NRIs: You benefit from zero personal income tax and no capital gains tax in the UAE.

Combined with GIFT City's Indian tax exemptions, this is one of the most tax-efficient routes available.

Wire transfers from UAE banks to GIFT City IBUs typically settle in one to two business days.

US NRIs: Report all GIFT City account balances on FBAR if they exceed $10,000 at any point during the year.

FATCA filing may apply.

The US-India DTAA can help avoid double taxation on dividends. Consult a cross-border CPA. US NRIs also face PFIC concerns with mutual funds, but direct equity IPOs avoid this classification.

UK NRIs: Capital gains from GIFT City IPOs are taxable in the UK.

You can claim foreign tax credits under the India-UK DTAA if Indian tax was withheld. Keep detailed records for HMRC reporting.

What Happens After Listing?

Your IPO shares are allotted. Listing day arrives. Now what?

You can trade your shares on NSE IX and India INX during their near-22-hour trading window.

The extended hours mean you can trade from Dubai, London, or New York during your local business hours.

Settlement follows a T+3 cycle for most transactions. Your IFSC broker handles the clearing.

Dividends (if any) are paid in the listing currency and credited to your GIFT City bank account.

Corporate actions (bonuses, splits, rights issues) follow IFSCA's continuous disclosure norms.

Listed companies must report financials in IFRS, US GAAP, or Ind AS. This means you'll see international-standard disclosures.

One thing to watch: early-stage liquidity. With limited listings, the order book may be thin.

Use limit orders instead of market orders to avoid unfavourable fills.

Frequently Asked Questions

Do I need a PAN card to invest in GIFT City IPOs?

Not always. Non-resident investors in certain IFSC investment categories are exempt from PAN requirements, per IFSCA guidelines. However, many brokers request PAN for KYC compliance. Check with your specific broker.

Can I apply for GIFT City IPOs using my existing NRE FD funds?

You can transfer from your NRE account to a GIFT City IBU account and then use those funds. But you cannot directly apply using an NRE demat or trading account. The IFSC ecosystem is separate.

What is the minimum investment for a GIFT City IPO?

It depends on the IPO's lot size and price band. For XED's IPO, shares were priced at $10 to $10.5 each. IFSCA has not set a universal minimum. Each offering defines its own lot size.

Can I invest in both GIFT City IPOs and domestic Indian IPOs?

Yes. These are completely separate markets. You need separate accounts for each. Many NRIs maintain both.

What if the IPO is oversubscribed?

Allotment follows a proportionate or lottery-based method depending on the category. Unallotted funds are refunded to your GIFT City bank account, not your overseas account.

Getting Started Today

The best time to set up your GIFT City accounts is before you need them. Here's a quick action plan.

This week: Research IFSC-registered brokers. Compare their fees, platforms, and onboarding process.

Next week: Start the account opening process. Initiate video KYC. Submit your documents.

In two weeks: Fund your GIFT City bank account with a small test transfer. Confirm everything works.

When the next IPO opens: You're ready. Log in. Research the company. Place your bid.

Many NRIs in our WhatsApp community are already positioned. They discuss GIFT City opportunities, share due diligence notes, and help each other navigate the process daily.

Download the Belong app to explore GIFT City mutual funds, compare FD rates, and track the GIFT Nifty. Start with what's comfortable. Then expand as the ecosystem grows.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO and equity investments are subject to market risks. Past performance does not guarantee future results. Tax rules are subject to change. Consult a qualified financial advisor and tax professional before making investment decisions. Verify all regulatory details with IFSCA.