If GIFT City operates under a different regulatory framework, how exactly can an investor use it to access global markets?

There are currently three primary structures through which Indian investors can invest internationally through GIFT City. Each works differently, follows a different operational setup, and is designed for slightly different types of investors.

The first route is through exchange access platforms, such as NSE-IX Global Access and India INX Global Access. These platforms allow investors to place orders on certain international exchanges through the GIFT City infrastructure.

The second route is through instruments known as Unsponsored Depository Receipts (UDRs). These securities trade on the NSE-IX exchange and represent shares of well-known global companies.

The third route is through GIFT City funds. These funds are structured inside the GIFT City jurisdiction and typically invest directly in global equities. Most of them are denominated in US dollars, reflecting the international nature of the investments.

Each of these routes works differently in terms of structure, access, and investor suitability.

So to understand how GIFT City can actually be used in practice, we will look at each of these three routes one by one in the sections that follow.