TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Electronic Trading Platforms) Regulations, 2026.
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.... (1) In these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings as assigned below, and their cognate expressions shall be construed accordingly, - (a)"Act" means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b)"Algorithmic Trading Systems (ATS)" means the hardware, software, procedures, and processes used to originate a transaction on an Electronic Trading Platform using a system-driven execution mechanism; (c)"Authority" means the International Financial Services Centres Authority established under sub- section (1) of section 4 of the Act; (d)"Competent Authority" means,- (i) Chairperson; (ii) Whole-Time Member or Committee of the Whole-Time Members or officer(s) of the Authority, as may be determined by the Chairperson; (e)"Eligible Instruments" means securities, money market instruments, foreign exchange, and derivatives as defined in the Reserve Bank of India Act, 1934, or other instruments of a like nature, as may be specified by the Authority from time to time. Explanation: For the removal of doubts, it is hereby clarif....
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....transacting in the Eligible Instruments through an ETP; (2) Words and expressions used and not defined in these regulations but defined in the Act, Reserve Bank of India Act, 1934 (2 of 1934), the Banking Regulation Act, 1949 (10 of 1949), or the Companies Act, 2013 (18 of 2013), or any rules or regulations made thereunder shall have the same meanings respectively assigned to them in those Acts, rules or regulations made thereunder or any statutory modification or re-enactment thereto, as the case may be. CHAPTER II REGISTRATION 3. Application for seeking registration. (1) No person shall operate an Electronic Trading Platform in the IFSC unless it has obtained a registration, as an Electronic Trading Platform Operator, under these regulations: Provided that an IFSC Banking Unit shall not be required to obtain the registration if such Unit or its parent bank, as the case may be, is :- a) the sole provider of buy or sell quotes in Eligible Instrument(s) on its Electronic Trading Platform; and b) one of the counterparties to every transaction undertaken through such Electronic Trading Platform. Provided further that a per....
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....irements specified in these regulations; (f) viability of the business plan and projections submitted by the applicant. 5. Grant of registration (1) Upon considering an application for certificate of registration, if the Authority is satisfied that the applicant, prima facie, fulfils the conditions for grant of registration, the Authority may issue an "in- principle approval" with or without additional conditions to be fulfilled by the applicant, prior to the grant of registration: Provided that the "in-principle approval" granted to an applicant may be revoked by the Authority if the applicant is unable to fulfil with the condition(s) specified in the "in-principle approval", to the satisfaction of the Authority." (2) The Authority may, upon being satisfied that the applicant fulfilled the requirements specified under these regulations, including the additional conditions imposed, if any, while granting "in-principle approval" grant registration to the applicant to operate as Electronic Trading Platform Operator subject to such conditions as the Authority may deem fit, and also specify the following: (a) the Eligible Instrument(s) th....
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....form Operator: Provided that the no order for suspension or cancellation of the registration shall be issued without giving such Electronic Trading Platform Operator a reasonable opportunity of being heard by way of filing written submissions. 8. Surrender of registration (1) An Electronic Trading Platform Operator may file an application to the Authority for surrender of its registration with the Authority, in such form and manner as may be specified. (2) Upon examination of the application filed under sub-regulation (1) and being satisfied that the surrender of registration is unlikely to cause any material adverse effect on the financial services market in the International Financial Services Centre or the interests of the Participants, the Authority may permit such surrender, subject to such conditions as it may deem fit. (3) The surrender of registration shall become effective only upon its acceptance by the Authority. 9. Net Worth requirements (1) An Electronic Trading Platform Operator set up as a company in the IFSC shall, at all times,, maintain a Net Worth of at least USD 200,000 or its equivalent in any specified foreign curre....
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....ic Trading Platform; (h) put in place a real time surveillance system for monitoring of prices, volumes and positions, to ensure market integrity; (i) put in place defined procedures for handling identified surveillance cases, including procedures for investigation, escalation and regulatory reporting; (k) make necessary arrangements for its Participants to connect to the Electronic Trading Platform using secure communication channels; (l) possess the capability to have a comprehensive network of Participants, and adequate facilities to admit and regulate its Participants; (m) put in place a mechanism for redressal of grievances arising out of trades undertaken on the Electronic Trading Platform, in such form and manner as may be specified by the Authority from time to time: Provided that any dispute arising from or in relation to the settlement of the trade undertaken on the Electronic Trading Platform shall be dealt with in accordance with the applicable laws and Operating Policy; (n) have the facility to disseminate information about trades, quantities and quotes in real time; (o) employ sufficient number of....
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....ovisions for (a) onboarding of Participants on the Electronic Trading Platform, as well as their suspension and termination; (b) roles and responsibilities of the Electronic Trading Platform Operator; (c) a liability framework for the Participants in the case of breach of the policy; (d) restrictions or other requirements for using the Electronic Trading Platform; (e) processing and execution of orders, risk management and control; and (f) Complaint Redressal and Dispute Resolution Mechanism for participants (3) Any material change in such policy shall be intimated to the Competent Authority forthwith. Explanation: For the purposes of this sub-regulation, the expression "material change" shall mean a significant alteration in the procedures, systems, performance standards, or safety requirements, specified in such policy, which affects the ability Electronic Trading Platform Operator to meet its contractual obligations. (4) An Electronic Trading Platform Operator shall establish and maintain adequate and effective systems and controls, including policies and procedures, to ensure that the Participants ....
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....g Platform Operator that enables the clearing and settlement of transactions in Eligible Instruments between two or more Participants through its electronic system shall ensure that satisfactory arrangements are in place for securing the timely discharge of the rights and liabilities of the parties to transactions conducted on or through such electronic system and shall inform its Participants of the details of such arrangements and any changes thereto. (2) The arrangements referred to in sub-regulation (1) shall be entered into by the Electronic Trading Platform Operator, with an entity, with the prior approval of the Authority. Provided that, if an Electronic Trading Platform operator desirous of offering services of clearing and /or settlement of funds shall, prior to offering such services, seek authorisation as a payment system operator under the International Financial Services Centres Authority (Payment and Settlement Systems) Regulations, 2024. CHAPTER IV GENERAL OBLIGATIONS OF AN ELECTRONIC TRADING PLATFORM OPERATOR 16. Business continuity plan and disaster recovery site An Electronic Trading Platform Operator shall establish and maintain a bu....
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....atform Operator shall submit its audited annual financial statements to the Authority within thirty (30) days of their finalisation. 21. Power to call for information The Authority may, at any time, call for any information, document or record from an Electronic Trading Platform Operator, and such Electronic Trading Platform Operator shall submit the same within the specified time. 22. Inspection, inquiry, investigation, and audit (1) The Authority may, at any time, undertake inspection or investigation, conduct inquiry or audit of an Electronic Trading Platform Operator. (2) Every manager, director, managing director, chairperson, officer and other employee of an Electronic Trading Platform Operator shall have the obligation to cooperate with the Authority during the inspection, inquiry, investigation or audit of such ETP Operator. (3) The Authority may, upon consideration of the report arising out of inspection, inquiry, investigation, or audit of an Electronic Trading Platform Operator, take such action as it may deem fit. 23. Directions by the Authority Without prejudice to the exercise of its powers under the provisions of the Act and ....
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....der the Securities and Futures (Organised markets) Regulations, 2018, issued by the Monetary Authority of Singapore. 2. India ETP Operator under the Master Direction -Reserve Bank of India (Electronic Trading Platforms) Directions, 2025, issued by the Reserve Bank of India. 3. United States of America Alternative trading systems approved under Reg - ATS by the Securities and Exchange Commission. 4. United Kingdom Multilateral Trading Facility (MTF) authorised by the Financial Conduct Authority, UK (FCA). 5. European Union Multilateral Trading Facility (MTF) authorised and supervised by the National Competent Authority (NCA) of the EU Participant State where the venue is registered and operating under Markets in Financial Instruments Directive II. 6. Dubai International Financial Centre (DIFC) An Authorised Market Institution (AMI) in DIFC, authorised to operate an alternative trading system for investments. SECOND SCHEDULE Fit and Proper requirements [see clause (c) of regulation 4] A person shall be fit and proper if :- (a) such person has a record of fairness and integrity, including but not limited to: (i....