Indian investors are increasingly looking beyond domestic markets: private tech giants like SpaceX and Anthropic promise returns that are hard to find locally. But between the desire and the deal lie currency controls, broker selection, taxes and legal nuances. Subho Moulik, founder and CEO of the Appreciate platform, broke down the process step by step in an interview with ETMarkets Smart Talk.
Step 1. Understand what you are buying
It's not just about public stocks like Apple or Tesla. The main draw is pre-IPO: stakes in private companies that haven't listed yet. That includes SpaceX, Anthropic and dozens more. Such investments are less liquid but potentially more rewarding. Moulik stresses: first, assess whether you can handle a long horizon and the risk of losing capital.
Step 2. Choose a legal channel
India's RBI restricts capital outflows through the LRS (Liberalised Remittance Scheme) — up to $250,000 per person per year. For US investments, this is the primary legal route. You will need to:
- open an account with a broker that works with Indian residents;
- complete KYC and confirm the source of funds;
- arrange a bank transfer stating the purpose as 'investment'.
Some platforms offer simplified schemes, but Moulik warns: cutting corners on legal compliance leads to frozen accounts.
Step 3. Sort out taxes
India and the US have a double taxation avoidance agreement. Dividends and capital gains are taxed under the rules of both countries, but you can offset taxes already paid. For pre-IPO, the situation is trickier: income may only arise upon selling the stake, not annually. Moulik advises having a tax consultant before the first trade.
Step 4. Factor in infrastructure and fees
Buying foreign stocks involves more than the share price. It includes:
- brokerage fees per trade;
- currency conversion costs (INR → USD);
- custody and withdrawal charges;
- possible restrictions on repatriating profits.
According to Moulik, the difference in costs between platforms can wipe out all returns over a short horizon.
Step 5. Start small and diversify
The Appreciate founder recommends against putting all funds into a single pre-IPO story. Even if it's SpaceX, concentration risk remains high. The optimal approach is to combine public ETFs, individual stocks and a small allocation to private companies.
“Today's Indian investor has access to the world's best technology companies. It's all about discipline and proper structuring,” concludes Subho Moulik.
FAQ
Can I buy SpaceX shares directly from India?
There is no direct exchange listing — the company is private. Access is possible via the secondary market or specialised pre-IPO platforms. This requires legal due diligence and often a high minimum ticket.
What is the dollar transfer limit for Indian residents?
The LRS scheme allows up to $250,000 per person per year. Exceeding this requires RBI approval.
Do I need to pay tax in the US?
Yes, but thanks to the India-US agreement, you can offset taxes paid in India. A tax consultant is needed for an accurate calculation.
This material is for informational purposes only and does not constitute investment advice. Cryptocurrencies and pre-IPO assets carry increased risk.
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