• UGI USER
  • Nov 24, 2023
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SEBI LAUNCHES IRRA: ENHANCING INVESTOR SAFETY

Why in the News?

  • Madhabi Puri Buch, SEBI Chairperson, unveils Investor Risk Reduction Access (IRRA), a collaborative effort by major stock exchanges: BSE, NSE, NCDEX, MCX, and MSE.

Purpose of IRRA

  • IRRA acts as a safety net for investors, designed to address technical glitches faced by trading members or stock brokers, ensuring a safety mechanism during disruptions.
  • Specifically created to mitigate risks during unforeseen disruptions that make a trading member’s site inaccessible.

Addressing Technological Glitches

  • Growing reliance on technology in the securities market has led to increased instances of glitches in trading systems, disrupting services and causing concerns for investors.
  • IRRA provides a mechanism for investors to square off/close open positions and cancel pending orders in times of technical disruptions.

Contingency Service

  • SEBI emphasizes the importance of a contingency service like IRRA to address disruptions, providing investors with a safety net in case of unforeseen technical issues.
  • IRRA aims to ensure that investors with open positions have avenues to close them, especially in volatile markets.

Invocation and Functionality

  • IRRA can be invoked by trading members facing technical glitches impacting client services across exchanges.
  • Stock exchanges can also enable IRRA suo motu in case of disruptions in a trading member’s services across all exchanges.

Access and Functionality for Investors

  • Investors, once authorized, can access the IRRA platform to view and cancel pending orders and close open positions across segments and exchanges.
  • Not available for algo trading and institutional clients. Certain securities under Trade-for-Trade settlement are not available for square-off.

Migration Process

  • Trading members can migrate to the IRRA platform after efforts to restore the primary and DR site, ensuring a smooth transition.
  • Reverse migration is allowed with specific guidelines and a limitation of one reverse migration during a trading day.

IRRA represents a crucial step in enhancing investor safety during technical disruptions, aligning with SEBI’s commitment to ensuring a resilient and secure trading environment.