Investor Risk Reduction Access (IRRA)

In a bid to fortify investor protection amidst the growing reliance on technology in the securities market, India’s major stock exchanges, including BSE and NSE, have collaboratively introduced the Investor Risk Reduction Access (IRRA) platform. Launched under the oversight of Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch, the platform is designed to serve as a safety network for investors during technical glitches, ensuring a seamless and secure trading experience.

IRRA Platform

• BSE, NSE, NCDEX, MCX, and MSE collaborated to develop the groundbreaking IRRA platform.
• Its primary purpose is to mitigate the risks faced by investors when trading members or stock brokers registered with SEBI encounter technical glitches.
• Acting as a safety network, the platform allows investors to close open positions and cancel pending orders in the event of disruptions at the stock brokers’ end.

The need for IRRA

• With the increasing integration of technology in the securities market, instances of glitches in trading members’ systems have risen, leading to disruptions in trading services and investor complaints.
• The IRRA platform addresses this need by providing a contingency service to investors, offering them an avenue to manage their positions during unforeseen outages or technical glitches.

Functionality of the IRRA Platform

• The IRRA platform is not designed to take fresh positions or orders; instead, its sole purpose is to allow investors to cancel pending orders and close open positions.
• It serves as a safety net, ensuring that investors have the means to manage their portfolios even in the face of technical disruptions.

Invocation and Monitoring

• Trading participants or even stock exchanges themselves can use the platform in response to monitoring factors like connectivity, order flow, and social media posts.
• The invocation process involves basic checks, and once activated, the platform downloads the trades of the trading members from all trading venues and notifies investors via SMS or email with a link to access IRRA.

Investor Benefits: Upon authorization to access the IRRA platform, investors gain the ability to view and cancel pending orders across all segments and exchanges.

They can also square off or close open positions and cancel orders pending at the exchanges. This enhanced control empowers investors to navigate market uncertainties with confidence.

Timeline for Migration and Reverse Migration

• Trading members are required to put efforts into restoring primary and disaster recovery sites before requesting migration to the IRRA platform.
• The timeline for migration requests is stringent, ensuring that adequate measures are taken before the start of market sessions or at least 2.5 hours before the scheduled closure of market hours.
• Reverse migration, on the other hand, follows a meticulous process based on the trading member’s request and confirmation from all exchanges.
• Only one reverse migration is allowed during a trading day, emphasizing the need for thorough issue resolution and testing before resuming business from the original trading system.

Conclusion

The introduction of the Investor Risk Reduction Access (IRRA) platform marks a significant stride in fortifying investor protection in India’s securities market. As technology continues to play a pivotal role in trading, the IRRA platform serves as a critical safety net, ensuring that investors can navigate unforeseen disruptions with confidence.

By allowing investors to manage their positions during technical glitches or outages, the IRRA platform contributes to a more resilient and secure trading environment. As we move forward, it will be essential to monitor the platform’s effectiveness and its impact on investor confidence and market stability.

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