SEBI Launches Investor Risk Reduction Access (IRRA) Platform

Taking a substantial step to safeguard investors' funds, Madhabi Puri Buch, the Chairman of the Securities and Exchange Board of India (SEBI), unveiled the investor Risk Reduction Access (IRRA) platform at the Bombay Stock Exchange (BSE).

This platform, a brainchild of Market Infrastructure Institutions (MII) and executed under the proficient leadership of SEBI, aims to mitigate risks for investors in case of technical glitches at the trading member's end, both at the primary site and the disaster recovery site.

What does the IRRA Platform do?

The IRRA platform is a Recourse mechanism for Trading Members encountering technical glitches affecting their ability to serve clients across exchanges at the Primary and Disaster Recovery sites. Upon activation, the platform conducts basic checks and downloads trades of Trading Members from all trading venues. Investors utilising internet trading or wireless technology receive timely SMS/email notifications containing a link to access the IRRA platform. Through this link, investors gain insights into the status of their investments and existing orders, enabling them to place orders to square off or close positions.

When was the IRRA Platform Launched?

The soft launch of IRRA occurred on October 3, 2023. However, it was officially inaugurated on November 20, 2023, marking its availability for a broader investor base. During the launch of the IRRA platform, the SEBI chairperson emphasised that the primary goal is safeguarding investors' funds and protecting their positions. She highlighted the importance of adopting a long-term investment approach, emphasising the potential for wealth creation rather than the daily risk of losses in the F&O segment.

Concentration on Creating Protective Layers for Investors

SEBI Chairperson Madhabi Puri Buch, who presided over the launch, emphasised the significance of creating protective layers for investors, especially during unforeseen technical challenges. The platform is specifically tailored for investors engaging in Internet-based trading and Security Trading through Wireless Technology, excluding algo trading and institutional clients.

Conclusion

Madhabi Puri Buch, SEBI Chief, expressed pride in India's technological advancements, highlighting the nation's role as a global leader in setting best practices. She emphasised that IRRA showcases India's immense potential through groundbreaking technologies, positioning the country on the global stage for innovation and investor protection. The IRRA platform is a testament to India's commitment to fostering a robust, investor-friendly financial ecosystem. As technology continues to reshape the financial markets, initiatives like IRRA underscore SEBI's dedication to staying ahead of the curve and ensuring a secure environment for investors. The platform's user-friendly interface and real-time functionality provide a seamless experience for investors navigating through unexpected technical challenges.

SEBI's IRRA platform emerges as a technological marvel and a pivotal tool empowering investors and reinforcing India's standing as a trailblazer in financial technology.