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SEBI Launches IRRA Platform

Publish Date: November 22, 2023

SEBI Introduces Investor Risk Reduction Access Platform


Market regulator, the Securities and Exchange Board of India (SEBI), launched the Investor Risk Reduction Access (IRRA) platform at the Bombay Stock Exchange (BSE) on November 20, 2023.

The Investor Risk Reduction Access (IRRA) platform, a strategic initiative devised and implemented by Market Infrastructure Institutions (MIIs) under the guidance of the Securities and Exchange Board of India (SEBI), stands as a pivotal tool dedicated to enabling investors to effectively square off or exit their positions. This functionality becomes especially crucial in instances of technical glitches at the trading member’s end, occurring at both the Disaster Recovery site and the Primary site. SEBI’s emphasis on this move underscores its unwavering commitment to not only enhancing investor protection but also fortifying the overall resilience of financial markets.

It is noteworthy, however, that the IRRA platform is deliberately tailored for trading members who support Internet-Based Trading (IBT) and Security Trading through Wireless Technology (STWT). This tailored design excludes algorithmic trading (algo trading) and institutional clients. IRRA platform, excluding certain trading methods, adds crucial safeguard for investors in internet-based and wireless trading.

The initial soft launch of the IRRA platform occurred on October 3, 2023, setting the stage for its official inauguration on November 20, 2023. This dual-phase rollout emphasizes the platform’s preparedness to extend its benefits to a broader base of investors. This becomes particularly relevant when considering SEBI’s observation that a significant proportion, nine out of 10 individual traders in the equity Futures and Options (F&O) segment, incurred net losses during both fiscal years 2019 and 2022.

CONCLUSION

In light of the substantial increase in the number of individual traders in the equity F&O segment, the unveiling of the IRRA platform can be interpreted as a strategic maneuver by SEBI. This move is strategically positioned to address and mitigate the heightened risks associated with internet-based and wireless technology-driven trading. Ultimately, the introduction of the IRRA platform contributes to the broader goal of enhancing investor confidence and fortifying the overall resilience of the financial markets in the evolving landscape of trading practices.

 

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