Investor Risk Reduction Access (IRRA) will be made accessible to all trading members across exchanges from October 3, NSE had said through a circular.
Let’s understand deeper about the rationale for introducing such a platform.
What is IRRA?
Investor Risk Reduction Access (IRRA) is a service developed by the stock exchanges as per the Securities and Exchange Board of India regulations, to provide investors an opportunity to square off/close the open positions and/or cancel pending orders in case of a disruption in trading services provided by the trading member/broker.
Why was IRRA introduced?
With the rising dependence on technology in the securities market, there has been a rise in instances of glitches in trading members’ systems, some of which led to disruption of trading services and investor complaints.
In order to address this issue, the Sebi in December 2022, announced the introduction of IRRA service.
How can a trading member access IRRA?
Upon facing technical glitches, trading members can request for enablement of the IRRA service as per the procedures specified by the stock exchanges.
The IRRA service will be enabled by the exchanges, suo moto, only in case of disruption of trading services of trading members across all the exchanges.
In case the disruption in trading services of trading member is with only one/some of the exchanges, the trading member may request the enablement, in which case it shall use the service for all the exchanges.
Further, the IRRA platform would be available for only one affected trading member.
If multiple trading members request access simultaneously, the one with a higher number of active UCCs across exchanges would get priority.
Once a trading member requests for IRRA service, the platform will seen notifications through email/SMS to all the investors of the trading member about the availability of the platform for exiting or squaring off their open positions.
Exchanges will display a link to download IRRA mobile application and to access the web-based trading platform. Similarly, trading members also need to mandatorily display the IRRA platform links on their respective websites.
How does IRRA work?
Once the application is downloaded, investors can login using their UCC or PAN along with the one-time password (OTP) sent to their registered mobile number and email id.
Investors can then monitor, cancel pending orders and square off open positions using the ‘Order book’ and ‘Net position screen’, respectively.
The IRRA platform will fetch the respective trading day’s orders, trades, from respective exchanges, and previous end-of-day net open positions across exchanges from Clearing Corporations.
The IRRA platform facilitates squaring off open positions and cancelling the pending orders.
However, fresh positions or new orders cannot be placed through the IRRA platform.
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