Sebi asks exchanges to set up Investor Risk Reduction Access platform

Markets regulator Sebi asked stock exchanges to set up an Investor Risk Reduction Access (IRRA) platform to give investors an opportunity to square off their position or cancel pending orders in case of disruption of trading services provided by trading members.

It said in recent times, with increasing dependence on technology in the securities market, there is a rise in instances of glitches in trading members’ systems, some of which lead to disruption of trading services and investor complaints.

“A joint platform to provide Investor Risk Reduction Access (IRRA) service shall be developed by the exchanges to provide the investors an opportunity to square off/close the open positions and/or cancel pending orders in case of disruption of trading services provided by the trading member,” Sebi said in a circular.

As per the provisions, trading members, upon facing technical glitches which lead to disruption of trading services, can request for enablement of the IRRA service.