Trading on electronic platforms is being encouraged across the world as it enhances pricing transparency, processing efficiency and risk control. In India.....has recently issued guidelines for operating Electronic Trading Platforms (ETPs) to transact in eligible instruments.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Trading on electronic platforms is being encouraged across the world as it enhances pricing transparency, processing efficiency and risk control. In India____has recently issued guidelines for operating Electronic Trading Platforms (ETPs) to transact in eligible instruments.

A	CIBIL
B	CRICIL
C	IRDAI
D	RBI

Explanation:

Detailed explanation-1: -Electronic Trading Platform (ETP) means any electronic system or facility, other than a recognised stock exchange, that facilitates buying and selling of eligible instruments as defined in para 3(iii). ‘ETP Operator’ means the person authorised by the Reserve Bank to operate the ETP.

Detailed explanation-2: -If you specifically want a broker that is also regulated in India, Interactive Brokers is a top contender, as it is a member of the National Stock Exchange, Bombay Stock Exchange and the Securities Exchange Board of India, or SEBI.

Detailed explanation-3: -While permitted forex transactions can be executed electronically, they should be undertaken only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges viz., National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange of India Ltd.

Detailed explanation-4: -The OctaFX app and its website have not been authorized by the RBI to deal in forex trading. The conduct and operations of forex trading(not being conducted on a recognized stock exchange) is illegal and also violates FEMA regulations.

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