INDmoney CEO calls for simplification of paperwork for global investing

Ashish Kashyap, Founder and CEO of INDmoney, has stated that there should be no excessive paperwork in the process of global investing. In an interview with Business Standard, he emphasised that salaried and income-tax-paying retail investors in India should be able to invest in global markets easily, and not just wealthy individuals sending large sums. He further added that now even investors with as little as 1 dollar can build their global portfolio.

Following concerns among investors due to the unauthorised liquidation of some US stocks at Stockal, Ashish Kashyap provided information regarding the security on his platform. He stated that every login on INDmoney requires two factors: credentials and biometric verification on the investor's registered device. Additionally, a third verification is required for any purchase or sale. He clarified that investors' accounts are opened and maintained in GIFT City, and no personal data is shared with foreign brokers.

Kashyap explained that shares are settled and held at the US central depository DTCC (Depository Trust & Clearing Corporation), which is similar to India's NSDL and CDSL. This process is carried out by US clearing and custody firms that are members of the SIPC (Securities Investor Protection Corporation). Under SIPC, each customer receives cover up to 5,00,000 dollars, of which 2,50,000 dollars is for cash. Cash amounts remain in separate client accounts of an international branch of an Indian bank in GIFT City, overseen by the IFSCA (International Financial Services Centres Authority).

He stated that INDmoney is not merely a front-end for a US broker, but has built its own regulatory infrastructure in GIFT City. They are a Principal Global Access Provider (GAP) directly licensed by the IFSCA, rather than an introducing broker. This includes broker-dealer and payment-service-provider capabilities. Due to their control over payment rails, deposits can reflect in minutes or, in some cases, within 12 to 14 hours, depending on the bank.

Regarding brokerage rates, Kashyap mentioned that they have reduced brokerage to 0.10 per cent per transaction, with a maximum cap of 10 dollars. Previously, this rate was 0.25 per cent with a cap of 25 dollars. There are now no charges for opening an account or for annual maintenance. There is no brokerage for SIPs in eligible stocks and ETFs, and no fixed fee is charged for remittances. The forex markup is determined by the investor's own bank, which is generally between 0.50 and 1.25 per cent. These prices apply to US stocks, global ETFs, and UCITS ETFs.

To remove the complexity of tax filing, the company has launched free tax filing. INDmoney is an authorised e-Return Intermediary (ERI) by the Income Tax Department, making the filing digital and free. The platform automatically calculates capital gains, prepares Schedule FA (Foreign Assets declaration), reports foreign income, and adjusts for US withholding tax.

Explaining through an example, he stated that if an investment of 1,000 dollars was made in Alphabet in August 2023 and sold in October 2026, the total cost including brokerage, forex markup, and GST was ₹83,102. After all charges and dividends, the investor received ₹2,47,846, representing a net profit of approximately 198 per cent. In this entire process, the total brokerage and forex-related charges were ₹3,076.