RBI Releases Draft Master Directions on ‘Electronic Trading Platforms’
- Blog|News|FEMA & Banking|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 1 May, 2024
Latest from Taxmann
Press Release No. 2024-2025/211; Dated: 29.04.2024
The RBI has released draft master directions on ‘Electronic Trading Platforms’ (ETPs). ETP refers to any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments are contracted.
‘Eligible Instruments’ means securities, money market instruments, foreign exchange instruments, derivatives, or other instruments of like nature, as may be specified by the RBI from time to time under section 45 W of Chapter III-D of the RBI Act, 1934.
As per the draft master directions, an entity seeking authorisation as an ETP operator must maintain a minimum net worth of Rs.5 crore and must continue to maintain a minimum net worth as prescribed at all times. The entity must be a company incorporated in India. Shareholding by non-residents, if any, in the entity seeking authorisation as an ETP operator must conform to all applicable laws and regulations, including the FEMA, 1999.
Further, the entity seeking authorisation as an ETP operator or its key managerial personnel must have at least three years of experience in operating trading infrastructure in financial markets.
The entity seeking authorisation as an ETP operator must obtain and maintain robust technology infrastructure with a high degree of reliability, availability, scalability and security in respect of its systems, data and network, appropriate to support its operations and manage the associated risks. These directions are effective immediately.
Also, the RBI may cancel an authorisation issued to an entity to operate an ETP, after affording a reasonable opportunity to represent its version, if it is satisfied that –
(a) The ETP operator has violated a statutory provision or any rule or regulation or direction or order or instruction issued by RBI or
(b) The ETP operator has violated any of the terms or conditions stipulated by the RBI while granting authorisation or
(c) The continuance of authorisation is prejudicial to the public interest or the financial system of the country.
Click Here To Read The Full Press Release
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
