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The Reserve Bank of India on Thursday issued draft ‘Electronic Trading Platform (ETP) Directions, 2017’, whereby no entity can operate an ETP without its authorisation. ETP means any electronic system or facility, other than a recognised stock exchange, that facilitates buying and selling of eligible instruments (securities, money market instruments, foreign exchange and derivatives).
Existing electronic trading platforms would also be required to obtain authorisation under these directions, within six months from the date of issue of these directions. The central bank said an ETP operator should be legally incorporated in India with full managerial and operational control exercised within India. Entities incorporated outside India are required to operate through subsidiaries set up in India provided that entities already operating ETPs in India without establishment of a subsidiary will be required to conform to this direction within a time frame set by RBI on a case to case basis.
An ETP operator should have minimum paid up equity capital of ₹25 crore which shall be maintained at all times.
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