10.04.2024
Electronic Trading Platforms (ETPs)
For Prelims:About Electronic Trading Platforms,Criteria for authorization of ETPs |
Why in the news?
Recently, the Reserve Bank of India (RBI) Governor raised concerns over unauthorized forex trading platforms and asked banks to maintain vigil against such illegal activities.
About Electronic Trading Platforms:
Criteria for authorization of ETPs
○The entity shall be a company incorporated in India.
○An entity seeking authorisation as an ETP operator shall maintain a minimum net-worth of Rs.5 crore (Rupees five crore only) and shall continue to maintain the minimum net-worth prescribed herein at all times.
○The existing entities operating ETPs with a net-worth lower than the prescribed net-worth requirement shall achieve the minimum net-worth of Rs.5 crores within one year from the date of authorisation by the Reserve Bank.
○Banks seeking authorisation to operate ETP shall earmark a minimum capital of Rs.5 crore for the purpose.
Source: Indian Express