The Reserve Bank of India has issued the Master Direction – Reserve Bank of India (Electronic Trading Platforms) Directions, 2025, superseding the 2018 directions and setting an updated authorisation and operating framework for electronic trading platforms (ETPs) on which transactions in “eligible instruments” are contracted. The directions apply with immediate effect and require prior RBI authorisation to operate an in-scope ETP, with authorised operators expected to ensure that only RBI-approved instruments are traded on their platforms. The framework defines ETPs as electronic systems other than recognised stock exchanges and covers securities, money market instruments, foreign exchange instruments, derivatives and other instruments specified by the RBI. It exempts electronic systems operated by a scheduled commercial bank or standalone primary dealer where the operator is the sole quote/price provider and counterparty to all transactions, while still allowing the RBI to require reporting and to direct such systems to comply with any or all conditions or seek authorisation. Authorisation eligibility includes being an India-incorporated company, compliance of any non-resident shareholding with applicable laws, at least three years’ relevant trading-infrastructure experience (entity or at least two key managerial personnel), minimum net worth of INR 5 crore to be maintained on an ongoing basis, and baseline technology capabilities including resilient infrastructure and real-time or near real-time trade dissemination. Operating requirements span fair and transparent access and membership criteria (including member identification via Legal Entity Identifier and/or Permanent Account Number), pre- and post-trade transparency, comprehensive risk management (including controls for algorithmic trading access), surveillance, conflicts-of-interest disclosure to the RBI, transparent fee structures, outsourcing governance, business continuity and disaster recovery, cyber and information security, annual IT/IS audits by appropriately certified or empanelled auditors, data confidentiality and retention for at least 10 years, and periodic and event-driven reporting (including quarterly platform reports, annual compliance status reports, and transaction reporting to trade repositories or other RBI-specified reporting platforms). Applications for authorisation are to be submitted via the RBI’s PRAVAAH portal, and authorisations or actions taken under the 2018 directions are deemed to have been taken under the 2025 directions. The RBI also notes it will be selective in granting authorisation for operating ETPs.

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