The Master Direction – RBI (Electronic Trading Platforms) Directions, 2025 sets out a regulatory framework for entities operating Electronic Trading Platforms (ETPs) dealing in eligible financial instruments such as securities, money market instruments, forex, and derivatives. All such platforms, unless specifically exempted (such as bank-run systems with the bank as the sole counterparty), must obtain prior authorisation from the RBI. The Directions specify eligibility criteria for authorisation, including Indian incorporation, minimum net worth of ₹5 crore, technological infrastructure, and experienced management.
The Directions also prescribe an extensive operational framework, covering areas like fair access and participation, risk and conflict management, business continuity, cybersecurity, algorithmic trading controls, outsourcing governance, and data preservation for at least 10 years. ETP operators must regularly report transaction data and compliance status to the RBI and other authorities. The RBI reserves the right to cancel authorisation, impose conditions, or exempt entities in public interest or to safeguard the financial system.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12870&Mode=0
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