Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
Context: The RBI has unveiled a draft Master Direction for Electronic Trading Platforms (ETPs) and is inviting feedback from stakeholders until May 31.
What are ETPs?
Electronic Trading Platforms (ETPs) are digital systems that enable the buying and selling of various financial instruments, including securities, money market instruments, foreign exchange instruments, and derivatives, among others. Unlike traditional stock exchanges, ETPs provide a virtual space 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 Guidelines:
In 2024, the RBI introduced a draft Master Direction on Electronic Trading Platforms (ETPs), requiring entities to secure prior authorization or registration from the RBI before operating an ETP. To be eligible, an entity must be incorporated in India and have a minimum net worth of Rs 5 crore.