INDIA: IFSCA Proposes Draft IFSC Electronic Trading Platform Regulations

Thursday February 26 2026

On 24^th February 2026, the International Financial Services Centres Authority (IFSCA) proposed regulations of the Authority on setting up and operation of Electronic Trading Platforms (ETPs) in IFSCs.

ETPs are trading venues that seek to match buyers and sellers of financial instruments. Unlike exchanges which may be accessed by a wide range of participants, retail as well as institutional, ETPs are largely meant for trading among institutional participants. Moreover, unlike in the case of exchanges, transactions undertaken on ETPs are usually settled bilaterally between the buyer and seller, instead of through the clearing house.

For a platform to be eligible for authorisation under these regulations, the electronic system of the said platform must be physically located in IFSC. While an applicant for authorisation as an ETP must set up a company in IFSC, entities already holding similar authorisation in certain jurisdictions are proposed to be permitted to set up in IFSC as a branch of the said entity.

The regulations also lay down the requirements for grant of authorisation including track record and financial soundness, relevant experience of Key Management Personnel, quality of risk management, validity of business plan and ability to satisfy the net worth requirements. The regulations also lay down that the requirements that the entity would be required to follow post grant of authorisation and during the process of operating the trading platform.

The regulations also require authorised ETPs to:

1. develop and implement objective and legally binding operating rules for the ETP
2. put in place a sound risk management system for operation of the ETP
3. develop objective, fair, transparent and non-discriminatory membership criteria

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