Draft framework for electronic trading platforms has been issued by RBI

Current Context: The Reserve Bank of India (RBI) issued a draft framework for Electronic Trading Platforms (ETPs) on April 29, 2024.

 

• This framework is aimed at entities operating ETPs for transactions in eligible instruments.
• The key points include maintaining a minimum net-worth of Rs 5 crore, being a company incorporated in India, and conforming to all applicable laws and regulations, including the Foreign Exchange Management Act, 1999, for any non-resident shareholding.
• The entity is also required to maintain robust technology infrastructure.
• The RBI has invited comments and feedback on the draft from relevant parties by May 31, 2024.
• This initiative is a significant step towards modernizing India’s financial markets infrastructure and ensuring fair access through transparent, safe, and efficient trading processes.

Question:

Q.1 What is the minimum net-worth that an entity operating ETPs must maintain according to the draft framework?
a. Rs 5 crore
b. Rs 7 crore
c. Rs 10 crore
d. Rs 50 crore