The Securities and Exchange Board of India (SEBI) has launched a new platform called Investor Risk Reduction Access (IRRA) to protect investors from financial losses in case of technical glitches at trading members. The platform will allow investors to close open positions and cancel pending orders even if their broker’s system is down.
IRRA was developed by all the stock exchanges in India – BSE, NSE, NCDEX, MCX, and Metropolitan Stock Exchange of India (MSE). It is designed to provide investors with a safety net in case of unforeseen technical disruptions that could prevent them from managing their investments.
How IRRA Works
When a trading member experiences a technical glitch, they can invoke the IRRA platform. Once the platform is activated, it will download all of the trading member’s trades from all of the trading venues. Then, it will send SMS/email notifications to investors who use internet trading or wireless technology. The notifications will include a link to access the IRRA platform.
Once investors have logged in to the IRRA platform, they can view and cancel pending orders, square off open positions, and cancel orders that are pending at the exchanges.
Who Can Use IRRA
IRRA is available to all retail investors who use internet trading or wireless technology. It is not available for algo trading or institutional clients.
How to Access IRRA
Investors can access IRRA through a new Internet-based Based Trading (IBT) web URL and mobile application. The IRRA platform is different from the web URL / mobile application used by the investor, as provided by the affected trading member. Investors can also download the mobile application beforehand for ease of login, in case of an unforeseen contingency.
What Happens When a Trading Member Migrates to IRRA
When a trading member migrates to IRRA, investors will receive an SMS/email notification with a link to access the platform. Once they have logged in, they can continue to manage their investments as usual.
What Happens When a Trading Member Resumes Normal Operations
Once the trading member has fixed the technical glitch and resumed normal operations, they can request to reverse migrate from IRRA. The process for reverse migration will be jointly evaluated by all of the exchanges.
SEBI’s Commitment to Investor Protection
The launch of IRRA is a testament to SEBI’s commitment to protecting investors. The platform provides investors with a safety net in case of technical glitches and helps to ensure that they have the ability to manage their investments even if their broker’s system is down.