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Stock exchanges to set up an Investor Risk Reduction Access (IRRA) platform

Published on January 01, 2023
Current Context: The Securities and Exchanges Board of India (SEBI) has ordered stock exchanges to establish an Investor Risk Reduction Access (IRRA) platform.
Stock exchanges to set up an Investor Risk Reduction Access (IRRA) platform
  • There are more instances of system errors among trading participants as a result of the securities market's increasing reliance on technology, some of which have caused the disruption of trading services. In these situations, investors who hold open positions run the risk of being unable to close them, especially when the markets are volatile.
  • Investor Risk Reduction Access (IRRA) platform:
    • The stock exchanges will work together to create the Investor Risk Reduction Access (IRRA) platform, which would let investors close out their positions or revoke pending orders in the event that the trading members' services are interrupted. Trading members are those who conduct transactions both on their own behalf and on behalf of their customers.
    • The new SEBI circular states that in the event of technical difficulties that could interrupt the trading services, the trading members may seek the enablement of the IRRA service.
    • The trading members can request the enabling of the IRRA service in the event that they encounter technical issues that could interrupt the trading services, per the new SEBI circular.
    • When a request is made in this respect and the trading system is revived, the SEBI also urged the stock exchanges to set up a comprehensive framework to assist the reverse migration from the IRRA system to the trading member's trading system.
    • By October 1, 2023, the stock exchanges and clearing companies must make the IRRA platform operational per a request from the SEBI.
  • SEBI (The Securities and Exchange Board of India)
    • Founded: 1988 and statutory power in 1992 through SEBI Act, 1992
    • Headquarters: Mumbai, Maharashtra
    • Chairman: Madhabi Puri Buch

Question: 

Q.1 Which organization directed stock exchanges to establish an Investor Risk Reduction Access (IRRA) platform?
a. IRDAI
b. TRAICity Beauty Competition.
c. SEBI
d. All of the above

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