As of 2025, India is the fifth biggest equity market globally, offering a wealth of opportunities for those looking to grow their money. The vibrant Indian stock market attracts millions with its potential for strong returns and diverse sectors.
Adding international stocks can add more resilience and balance to a portfolio. With exposure to global markets, you have a chance to benefit from the growth of leading companies like Amazon, Apple, Tesla, Microsoft, Alphabet (Google), and Netflix. Moreover, you reduce the risks that come from relying solely on domestic trends.
Although it’s straightforward to buy international stocks through an Indian broker, the real question is, can you hold these global shares directly in your Indian demat account? Let’s find out!
The core purpose of your Indian demat account
Your Indian demat account is a digital vault specifically designed for Indian securities. It is where your shares, bonds, and other financial instruments traded within India are securely held in electronic form. It simplifies transactions, eliminates physical share certificates, and makes participating in Indian markets incredibly convenient.
The regulatory framework overseen by NSDL and CDSL, under the purview of the Securities and Exchange Board of India (SEBI), usually covers securities listed on Indian stock exchanges.
How do Indians buy international stocks?
Many Indian brokers partner with foreign brokers to offer you access to international markets. These platforms act as a bridge. They assist you with onboarding, completing the Know Your Customer (KYC) process, and opening your foreign brokerage account. They offer an easy-to-use interface to track your international portfolio and also support INR conversion to foreign currencies (like US Dollars) and fund transfers.
However, these brokers and apps do not hold your international securities. They just facilitate your journey. You can open an international investing account via your Indian broker, browse available international stocks, and place orders in much the same way as you would for Indian shares. But these stocks are being bought directly from international markets, not from Indian exchanges. So, while you always remain the legal owner of your shares, they don’t enter your Indian demat account.
So, where exactly are your international stocks held?
This is a common point of confusion, so let’s understand it clearly with a US stock example.
Suppose you want to purchase shares of Amazon. You open your Indian trading app, which partners with a US-based brokerage. Once you place your order, the shares are held in a custodian account by the foreign broker, with you as the beneficial owner.
An Indian trading app only connects you with the foreign market and lets you:
- Place buy or sell orders
- View your portfolio
- Transfer funds
- Access statements and reports
As you can see, when you open a demat account through a reliable app, it only provides access to and information about the US stock market. The actual shares remain with the US custodian.
This structure helps you stay compliant with both Indian and international regulatory requirements. It also gives you transparency about where your global assets are held. If you need to transfer or sell holdings, the foreign broker processes your request directly, with the Indian app serving as your interface.
To sum up
The Indian market offers plenty of opportunities, but adding international stocks can help you diversify and grow your portfolio in new ways. While you cannot hold international shares in your Indian demat account, you have easy access to global markets through partnerships offered by Indian brokers. Just choose a trading app that connects you with global giants and makes managing foreign shares straightforward.
MO Riise by Motilal Oswal brings international opportunities like US stocks within easy reach. Backed by the legacy of a SEBI-registered public entity, the app is already trusted by more than 40 lakh users. You can open a demat account online within 15 minutes to get started. With fractional ownership, you can begin owning US shares with as little as $1. Also, with real-time data, powerful analysis tools, expert-backed research, and an FAQ section, you can make well-informed decisions.
Don’t miss out on international opportunities. Download MO Riise now!
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