GET Stock QuotesNews18 APP
News18 English

ASSOCIATE SPONSORs

Powered by cricketnext logo
»
1-min read

RBI Floats Draft Norms For Setting up ETPs For Financial Market Instruments

As per the draft direction, an Electronic Trading Platforms (ETP) operator will be incorporated in India with full managerial and operational control exercised within India.

PTI

Updated:October 12, 2017, 11:25 PM IST
facebookTwittergoogleskypewhatsapp
RBI Floats Draft Norms For Setting up ETPs For Financial Market Instruments
In this file photo, the Reserve Bank of India (RBI) Governor Urjit Patel attends a news conference after the bi-monthly monetary policy review in Mumbai. (Photo: Reuters/Shailesh Andrade)
Mumbai: Aimed at ensuring transparency, the RBI on Thursday floated draft directions for setting up of Electronic Trading Platforms (ETPs) for financial market instruments regulated by it.

As per the draft direction, an ETP operator will be incorporated in India with full managerial and operational control exercised within India.

"Foreign shareholding, if any, in ETP operators should conform to all applicable laws and regulations, including the Foreign Exchange Management Act, 1999," it said. With regard to capital, it said, the operator should have minimum paid up equity of Rs 25 crore.

The draft framework includes detailed eligibility criteria, technology requirements and reporting standards. Existing electronic trading platforms would also be required to obtain authorisation under these directions, within six months from the date of issue of these directions. The RBI has sought comments from market participants and other interested parties on its draft framework by November 10.

Trading on electronic platforms is being encouraged across the world as it enhances pricing transparency, processing efficiency and risk control.

Various financial instruments which would be traded through ETP include money market instruments, foreign exchange and derivatives.

ETP once get approval would undertake due diligence at the time of on-boarding of all members.

It will also maintain all relevant information about the member and ensure that all trades on the system, without exception, are dealt with as per established procedure.

Post the global financial crisis, trading on electronic platforms is being encouraged in several jurisdictions, driven primarily by regulatory initiatives to reform OTC derivative markets, changes in market structure and technology advancement.

Electronic platforms provide several benefits in terms of transparency in pricing, processing efficiency in terms of transaction time and cost, improved risk controls and help in market surveillance by addressing market abuse and unfair trading practices, it said.

These platforms have the potential to positively impact the market structure by broadening market access, increasing competition and reducing dependency on traditional trading methods, it said.
Read full article
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
HDFC 1,896.80 +38.45 +2.07
SBI 303.25 -3.85 -1.25
Yes Bank 341.20 -1.20 -0.35
ICICI Bank 346.15 +2.90 +0.84
HDFC Bank 1,934.30 +43.80 +2.32
Company Price Change %Gain
Indiabulls Hsg 1,243.40 +35.05 +2.90
HDFC 1,897.00 +37.05 +1.99
SBI 302.75 -3.60 -1.18
IDFC 59.00 -2.65 -4.30
Yes Bank 340.25 -2.25 -0.66
Top Gainers
Company Price Change %Gain
Indiabulls Hsg 1,243.70 +34.35 +2.84
ITC 273.40 +7.35 +2.76
UPL 800.50 +19.75 +2.53
HDFC Bank 1,934.30 +43.80 +2.32
HDFC 1,896.80 +38.45 +2.07
Company Price Change %Gain
ITC 272.85 +6.95 +2.61
HDFC Bank 1,931.80 +40.70 +2.15
HDFC 1,897.00 +37.05 +1.99
M&M 758.70 +13.65 +1.83
Kotak Mahindra 1,045.40 +18.20 +1.77
Top Losers
Company Price Change %Gain
Bharti Infratel 343.80 -22.30 -6.09
Adani Ports 416.25 -17.15 -3.96
Hindalco 253.90 -8.85 -3.37
UltraTechCement 4,408.65 -135.60 -2.98
Tata Steel 751.75 -22.25 -2.87
Company Price Change %Gain
Adani Ports 414.35 -18.70 -4.32
Tata Steel 751.85 -22.40 -2.89
Coal India 283.10 -8.20 -2.81
BHEL 97.25 -2.60 -2.60
Sun Pharma 576.25 -7.10 -1.22

Live TV