Context: India's stock exchanges, including BSE and NSE, have jointly developed the IRRA platform to reduce risks faced by investors due to certain technical glitches.
Need for IRRA: With increasing dependence on technology in the securities market, there has been a rise in instances of glitches in trading members’ systems, some of which lead to disruption of trading services and investor complaints. In such instances, investors with open positions are at risk of non-availability of avenues to close their positions, particularly if markets are volatile.
Working of IRRA:
- IRRA can be invoked by trading members when they are faced with any technical glitch at their end impacting their ability to service clients.
- On invocation, the platform sends a link to the investors to access IRRA.
- Once the investors are authorized to access the IRRA platform, investors can complete the pending orders and close their open positions.
Thus, IRRA platform helps as a safety net in case of any technical glitches faced by a trading member or stock broker in a stock exchange.