Master Direction – Reserve Bank of India (Electronic Trading Platforms) Directions, 2025
UR
- Applies toEntities that operate an Electronic Trading Platform
- StatusIn force
- IssuedJun 16, 2025
- Amendmentsnone tracked
- Length39 points in 5 sections · 4 min read
The four dates on this rule
- PublishedJun 16, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyJun 16, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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38 of the 39 points name no product and bind every product. All products.
What it says
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Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
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Must know
1. Covers ETP operators
This rule covers entities that run Electronic Trading Platforms.
2. Prior authorisation is required
No one may run an ETP without RBI's prior authorisation.
3. Company incorporated in India
The entity applying must be a company incorporated in India.
4. Three years of experience needed
The operator, or two of its key people, need three years running trading systems.
5. ₹5 crore net worth minimum
An ETP operator must always hold at least ₹5 crore net worth.
6. Reliable secure technology required
The platform's technology must be reliable, secure and able to grow.
7. Real time trade information
Trade details must reach members in real time or close to it.
8. Apply through the PRAVAAH portal
An entity applies for authorisation through RBI's PRAVAAH portal.
9. RBI's decision is final
RBI's decision to grant, refuse or cancel authorisation is final.
10. Authorisation cannot be transferred
An ETP operator may not transfer its authorisation to anyone else.
11. RBI can cancel authorisation
RBI can cancel the authorisation if the operator breaks a rule, order or instruction RBI gave.
12. Surrender the authorisation letter
A cancelled operator must hand the original authorisation letter back to RBI.
13. Fair membership rules needed
An ETP operator must have clear, fair rules for who can join.
14. Due diligence on members
Every member must be checked when it joins, and its details kept.
15. Identified by LEI or PAN
Each member is identified by its own Legal Entity Identifier or PAN.
16. A written risk framework
The operator must have one full, written plan for managing risk.
17. Control who can access it
The platform must stop anyone unauthorised from getting on it.
18. Trades must be fair
Every trade on the system must be fair, open and orderly.
19. Test algo trading systems first
Any automated trading system must be tested before it is let on.
20. Watch trading for market abuse
The operator must watch trading closely to stop unfair or disorderly deals.
21. Tell RBI of conflicts
RBI must be told about any conflict from related parties or group firms.
22. Fair fees for all members
Fees charged to members must be fair and the same for all.
23. Outsourcing needs its own oversight
Any outsourced work still needs proper oversight of its own risks.
24. A business continuity plan
The operator needs its own plan for outages and disaster recovery.
25. Yearly IT security audit
An ETP operator must get an IT security audit at least once every year.
26. Keep platform data ten years
The operator must keep all platform data for at least 10 years.
27. Investigation data kept three years
Data wanted for an investigation is kept at least three years after it closes.
28. Quarterly report to RBI
The operator must send RBI a quarterly report on how the platform works.
29. Yearly compliance report
Every year, the operator reports to RBI on its own compliance.
30. Report disruptions to RBI
Any outage or market abuse must be emailed to RBI right away.
31. Ending operations needs approval
An operator may stop running the platform only with RBI's prior approval.
Background
1. Called the 2025 Directions
This rulebook is the 2025 Directions for electronic trading platforms.
2. Own trading systems exempt
A bank's or dealer's own trading system skips this, when it alone gives the price and takes the trade.
3. Old approvals still count
Any approval given under the 2018 rules still counts under this one.
4. Effective immediately
The rule started the day RBI issued it.
5. What algo trading means
Algo trading is any trade a software programme starts on its own.
6. What counts as an ETP
An ETP is any electronic system, other than a stock exchange, where such deals are struck.
7. What eligible instruments means
Eligible instruments include securities, money instruments, forex instruments and derivatives RBI names.
8. Who is an ETP operator
An ETP operator is the entity RBI has let run an ETP.