In a discussion paper on its website, the central bank said the existing FX-CLEAR platform should be extended to the retail customers of through an internet-based application.
However, the retail market will be separate from the inter-bank market. While banks can access both the institutional and retail markets, retail customers would be limited to the retail market segment of the platform.
Both the markets will have the same timings, 9 am to 5 pm, where orders can be placed anonymously.
All data related to trades generated in the trading platform should be maintained in India for at least 20 years.
“No data shall be exported outside India without the prior permission of the Reserve Bank,” the central bank said.
Foreign shareholding will be allowed according to norms and the operator should preferably have experience, of at least three years, in operating infrastructure related to trading of financial instruments.
The operator would be in constant scrutiny of the central bank.
“An ETP operator will ordinarily not be eligible for authorisation, if within the last 5 years, it or any of its directors or promoters or senior officers have been subjected to adverse action that the Reserve Bank considers material, by any regulator or any other public authority,” the central bank said.