Investor Risk Reduction Access (IRRA) Platform

Investor Risk Reduction Access (IRRA) Platform

News: SEBI has launched the Investor Risk Reduction Access (IRRA) platform.

What is it?
•The Investor Risk Reduction Access (IRRA) platform is a mechanism designed to safeguard the interests of investors in the event of technical glitches or disruptions faced by trading members or stockbrokers registered with SEBI (Securities and Exchange Board of India).
•India’s stock exchanges, including BSE and NSE, have jointly developed the IRRA platform to reduce risks faced by investors due to certain technical glitches.
•The IRRA platform is to act as a ‘safety net’ for investors in case of technical glitches faced by a trading member or a stock broker registered with SEBI. It will provide investors an opportunity to close open positions and cancel pending orders in case of disruption at the stock brokers’ end.

How will the platform work?
•It can be invoked by trading members when there’s a technical glitch at their end across exchanges from both – the primary site and disaster recovery site.
•Even stock exchanges can suo moto initiate the service, if needed, irrespective of any such request by the trading members. It is done only in case of disruption faced across all the exchanges, where the trading member is a member.
•A trading member can inform the stock exchange via email to migrate to the IRRA platform before the start of the market session or after the start of the market but at least 2.5 hours before the scheduled closure of market hours of the segment in which it holds an open position.

Other initiatives taken by SEBI to protect Investor interests:
•System Driven Disclosures: SEBI has introduced system driven disclosures to ensure transparency.
•Continuous Disclosure Requirements: SEBI has strengthened the continuous disclosure requirements for listed companies.
•Disclosure Based Regulatory Regime: Under this, the issuers, intermediaries, etc., disclose about themselves, the product, the market which helps the investors to take decisions carefully.
•Systems and Practices Which Make Transactions Safe: Various measures such as screen-based trading system, dematerialization of securities, T+2 rolling settlement have been introduced by SEBI to regulate the intermediaries, and for issuance and trading of securities.