About Electronic Trading Platforms:
- These are electronic system, other than a recognised stock exchange, on which transactions in eligible instruments like securities, money market instruments, foreign exchange instruments, derivatives, etc. are contracted.
- In India no entity shall operate an ETP without obtaining prior authorisation of RBI under ‘The Electronic Trading Platforms (Reserve Bank) Directions, 2018’.
- Resident persons operating ETPs without authorisation from RBI, collecting and effecting/remitting payments directly/indirectly outside India shall render themselves liable for penal action, including the Foreign Exchange Management Act, 1999 and the Prevention of Money Laundering Act, 2002.
- ETPs authorised by the Reserve Bank shall host transactions only in instruments approved by the Reserve Bank.
- Criteria for authorization of ETPs
- The entity shall be a company incorporated in India.
- An entity seeking authorisation as an ETP operator shall maintain a minimum net-worth of Rs.5 crore (Rupees five crore only) and shall continue to maintain the minimum net-worth prescribed herein at all times.
- The existing entities operating ETPs with a net-worth lower than the prescribed net-worth requirement shall achieve the minimum net-worth of Rs.5 crores within one year from the date of authorisation by the Reserve Bank.
- Banks seeking authorisation to operate ETP shall earmark a minimum capital of Rs.5 crore for the purpose.
