Facts for Prelims (FFP)
Source: BS
Context: The RBI released a draft Master Direction for Electronic Trading Platforms (ETPs), seeking feedback from stakeholders by May 31.
What are ETPs?
Electronic Trading Platforms (ETPs) are electronic systems that facilitate the trading of various financial instruments such as securities, money market instruments, foreign exchange instruments, derivatives, and more. Unlike recognized stock exchanges, ETPs operate as electronic platforms where buyers and sellers can execute trades electronically.
In India, examples of ETPs include: NSE NOW (NSE’s Online Trading System), BSE Bolt, Currency ETPs, MCX (Multi Commodity Exchange) and NCDEX (National Commodity & Derivatives Exchange)
RBI’s Direction:
The RBI issued a Draft Master Direction on Electronic Trading Platforms (ETPs) in 2024, stipulating those entities must obtain prior authorization or registration from the RBI to operate an ETP. To qualify, an entity must be incorporated in India and maintain a minimum net worth of Rs 5 crore
