CURRENT AFFAIRS FOR UPSC IAS

The Reserve Bank of India (RBI) released a draft Master Direction for Electronic Trading Platforms (ETPs) in the wake of increased integration of the onshore forex market with offshore markets.

Key Highlights of the Draft Master Direction - RBI (Electronic Trading Platform Directions, 2024)

Need for Regulation: The RBI's move comes in response to concerns raised about unauthorized entities offering forex trading facilities with promises of high returns.

• Minimum Net-Worth Requirement: Entities applying for authorization as Electronic Trading Platform (ETP) operators must maintain a minimum net worth of Rs 5 crore. This requirement is to be upheld continuously to ensure financial stability and resilience.
• Incorporation in India: The entity seeking authorization as an ETP operator must be a company incorporated in India.
• Shareholding Compliance: Any shareholding by non-residents in the entity must comply with all relevant laws and regulations, including the Foreign Exchange Management Act, 1999.
• Technology Infrastructure: ETP operators are required to maintain robust technology infrastructure characterized by high reliability, availability, scalability, and security.