(INDIA) — The International Financial Services Centres Authority (IFSCA) released draft regulations for Electronic Trading Platforms on Wednesday, setting out authorisation, net worth, risk management and governance standards for platforms operating in Indian Financial Services Centres.
The draft, titled the Draft IFSCA (Electronic Trading Platform) Regulations, 2026, proposes a framework that would require an Electronic Trading Platform to meet a set of baseline controls before operating in an IFSC.
IFSCA set March 18, 2026 as the closing date for public consultation and said it will finalise the regulatory framework after the consultation period ends.
The draft regulations place the starting point on prior approval, requiring an ETP to obtain authorisation before it can be established.
They also set a minimum net worth threshold of USD 250,000, tying entry to a basic financial requirement alongside other operational expectations.
IFSCA’s proposal applies fit-and-proper criteria to key personnel, linking the ability to run an Electronic Trading Platform to checks on who is responsible for its management and oversight.
Risk controls sit at the centre of the draft, which requires ETPs to put in place robust risk management frameworks and governance standards as part of the conditions for operating inside IFSCs.
The draft also requires mandatory cyber security and business continuity protocols, reflecting an expectation that an Electronic Trading Platform must be prepared for disruptions while keeping systems and data protected.
Alongside that, IFSCA’s proposal calls for transparent operating rules, including objective membership criteria, setting parameters on how participation in an ETP is governed.
Market monitoring features prominently in the draft, which requires surveillance systems that provide real-time monitoring of prices, volumes, and positions to ensure market integrity.
For members using an ETP, the draft proposes grievance redress mechanisms as a requirement intended for member protection, placing formal complaint handling within the platform’s required structure.
On what can be traded, the draft limits ETP activity to specified eligible instruments, listing securities, money market instruments, foreign exchange, derivatives, and similar products.
Cryptocurrencies and tokens are expressly prohibited under the proposal, drawing a clear restriction on the types of products that an Electronic Trading Platform could offer within an IFSC.
IFSCA’s draft also sets out who may establish ETP operations in an IFSC by listing eligible jurisdictions for existing authorised entities, naming Singapore, USA, UK, EU, Hong Kong, DIFC, and India.
The proposal extends beyond licensing and product scope into operating mechanics, requiring ETPs to provide trading members with screen-based trading systems for trade submission.
ETPs must also provide secure communication channels for connection to the platform, placing connectivity controls alongside the trading system requirement.
IFSCA said the regulations align with Section 45W of the RBI Act and the IFSCA Act, positioning the draft within the legal framework governing financial services regulation in India’s international financial services centres.
The consultation timetable sets up the next stage of the process, with stakeholders able to respond until March 18, 2026 before IFSCA moves to finalise the rules.
The draft regulations, taken together, outline a single authorisation-and-standards model for Electronic Trading Platforms in IFSCs, combining financial eligibility through net worth with requirements covering personnel, surveillance, cyber security and operational continuity.
By specifying both the markets ETPs may serve and the instruments they may handle, IFSCA’s proposal defines how an Electronic Trading Platform would fit into IFSC activity while enforcing a prohibition on cryptocurrencies and tokens.
The draft’s operational requirements also connect the rules to day-to-day trading processes, from screen-based trade submission to secure connections that link members to the platform’s systems.
IFSCA’s proposed rulebook sets out the core conditions that would apply to an Electronic Trading Platform seeking to operate in an Indian Financial Services Centre, with the final shape of the framework set to follow the consultation period.
Ifsca Targets Electronic Trading Platforms’ Net Worth in 2026 Rules
The IFSCA’s new draft regulations for Electronic Trading Platforms establish a comprehensive framework for authorization, financial stability, and operational security in Indian IFSCs. The proposal includes a $250,000 net worth threshold and mandates real-time market monitoring. Notably, it excludes cryptocurrencies and tokens from eligible instruments. Public consultation remains open until March 18, 2026, to refine these standards for market integrity and governance.
