The International Financial Services Centres Authority (IFSCA) on February 24, 2026, issued Public Consultation on the Draft International Financial Services Centres Authority (Electronic Trading Platform) Regulations, 2026.
The objective of this public consultation is to seek comments/views/suggestions from the public on the proposed regulations of the Authority on setting up and operation of Electronic Trading Platforms (ETPs) in IFSCs.
Electronic Trading Platforms (ETPs) are digital venues that match institutional buyers and sellers of financial instruments. Unlike traditional exchanges that serve both retail and institutional participants and use a clearing house for settlement, ETP transactions are typically settled bilaterally between counterparties. Many jurisdictions regulate such platforms, though terminology varies—being known as Alternative Trading Systems in the United States and Multilateral Trading Facilities in Europe.
In India, regulatory authority stems from Section 45W of the RBI Act, which empowers the Reserve Bank of India to issue directions to entities dealing in securities, money market instruments, foreign exchange, derivatives, and similar instruments (excluding trade execution procedures on recognised exchanges). Exercising this authority, RBI issued the Master Direction on Electronic Trading Platforms (2025). Under the International Financial Services Centres Authority framework established by law, new regulations for ETPs in International Financial Services Centres (IFSCs) are proposed for 2026 to govern how such platforms are established and operated.
To obtain authorization, an ETP’s electronic system must be physically located in an IFSC, and applicants must either incorporate a company there or, if already licensed in certain jurisdictions, establish a branch. The regulations set standards relating to financial soundness, track record, management expertise, risk management quality, business viability, and minimum net worth. Once authorized, platforms must maintain objective operating rules, robust risk management systems, and transparent, fair, and non-discriminatory membership criteria.
The regulations limit trading on ETPs to instruments permitted under the RBI Act—such as securities, money market instruments, foreign exchange, and derivatives—while explicitly excluding cryptocurrencies or tokens. In drafting the framework, regulators reviewed comparable regimes in multiple jurisdictions, including Singapore and the United States, to align international best practices with India’s regulatory approach.
General public and stakeholders are requested to forward their comments/ suggestions on the draft directions through e-mail to Ms. Riddhi Bhandari at [email protected] and Mr.T.P.Samuel Wesly at [email protected] with subject line “Comments on draft IFSCA ETP Regulations, 2026” latest by March 18, 2026 in the attached format.
[Circular No. IFSCA-NBFE/1/2026-Banking]
