RBI Issues Master Directions for Electronic Trading Platforms, 2025
RBI issues new Master Directions for Electronic Trading Platforms 2025 to enhance transparency, security, and oversight in digital financial markets
The Reserve Bank of India (RBI) issued a sweeping update to its regulatory framework governing Electronic Trading Platforms (ETPs) with the release of the “Master Direction – Reserve Bank of India (Electronic TradingPlatforms) Directions, 2025” dated June 16, 2025, effective immediately. The new directive supersedes the earlier 2018 guidelines and is aimed at enhancing...
The Reserve Bank of India (RBI) issued a sweeping update to its regulatory framework governing Electronic Trading Platforms (ETPs) with the release of the “Master Direction – Reserve Bank of India (Electronic TradingPlatforms) Directions, 2025” dated June 16, 2025, effective immediately.
The new directive supersedes the earlier 2018 guidelines and is aimed at enhancing the transparency, safety of electronic financial trading in India. It follows an earlier public draft published in April 2024, refined after stakeholder feedback.
Key Highlights of the 2025 Master Directions
1. Scope and Applicability
The guidelines apply to all non-stock exchange electronic platforms dealing in financial instruments such as securities, derivatives, foreign exchange, and money market instruments. Platforms operated solely by commercial banks or standalone primary dealers are exempt unless directed otherwise by RBI.
2. Mandatory Authorization
No entity can operate an ETP without prior authorization from the RBI. All applications must be submitted through the RBI’s PRAVAAH portal and meet stringent eligibility criteria.
3. Eligibility Criteria
- Must be an Indian-incorporated company.
- Minimum net worth of Rs. 5 crore.
- At least two key managerial personnel with 3+ years of experience in financial market infrastructure.
- Possess robust technology for secure, scalable, and real-time operations.
4. Operational and Risk Management Requirements
The framework mandates:
- Transparent and fair membership criteria.
- Robust risk management, including controls for algo trading systems.
- Surveillance systems for market integrity.
- Cybersecurity and business continuity plans.
- Annual IT/IS audits conducted by certified professionals.
5. Data and Reporting Obligations
ETP operators must:
- Maintain data records for at least 10 years.
- Report quarterly and annual compliance data to the RBI.
- Promptly report disruptions or market abuse.
A standardized reporting format is provided, including Tables 1 and 2 for operational and transaction-related data, to be submitted within 15 days of each quarter’s end.
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