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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Master Direction- Reserve Bank of India (Electronic Trading Platforms) Directions, 2025

16-Jun-2025 | RBI/FMRD/2025-26/137 FMRD.MIOD.No. 02/14.03.027/2025-26

Reserve Bank of India (RBI) has issued the Master Direction- Reserve Bank of India (Electronic Trading Platforms) Directions, 2025, superseding the 2018 ETP Directions, effective from 16th June 2025.

Key highlights are:
1. These directions regulate entities operating ETPs for transactions in eligible instruments (securities, money market instruments, foreign exchange instruments, derivatives, etc.)
2. No entity can operate an ETP without prior RBI authorization.
3. Applications for authorization must be submitted via the PRAVAAH portal with required details (Annex-1).
4. Operating Framework:
a. Access and Participation: Transparent membership criteria, due diligence, unique identification (LEI/PAN), documented rules, and fair pre/post-trade information sharing.
b. Risk Management: Comprehensive framework to manage risks, ensure fair trading, prevent unauthorized access, and control erroneous transactions. Special provisions for algorithmic trading include testing and monitoring frameworks.
c. Surveillance: Systems to ensure fair and orderly trading and monitor market integrity.
d. Conflict of Interest: Disclose conflicts involving related parties to RBI.
e. Transparency: Fair and non-discriminatory fee structure.
f. Outsourcing: Governance and risk management for outsourced operations; compliance with RBI regulations mandatory.
g. Business Continuity: Robust Business Continuity Plan (BCP) and disaster recovery arrangements.
h. Information Security: Adherence to cyber security norms and annual IT/IS audits by certified auditors.
i. Data Management: Ensure data confidentiality, maintain records for 10 years (or longer for investigations), and share data with RBI/authorities if required.
5. Reporting Requirements:
a. Quarterly reports (Annex-2) on platform operations, disruptions, market abuse, and transaction details within 15 days of quarter-end.
b. Annual compliance report by April 30 of the following financial year.

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