Mumbai, Oct 5 (PTI) The Reserve Bank Friday issued guidelines for operating Electronic Trading Platforms (ETPs) to transact in eligible instruments.

Trading on electronic platforms is being encouraged across the world as it enhances pricing transparency, processing efficiency and risk control.

It also enables better market surveillance and, therefore, discourages market abuse and unfair trading practices.

As per the norms issued by the central bank ETPs will mean any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments.

"No entity shall operate an ETP without obtaining prior authorisation of the Reserve Bank under these directions," it said.

"An entity seeking authorisation as an ETP operator under the directions will maintain a minimum net-worth of Rs 5 crore and will continue to maintain the minimum net-worth prescribed at all times," it said. PTI

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