IRRA PLATFORM (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     24th November 2023        
output themes

Context: Recently, the Indian Registrar of Record Keeping Agency (IRRA) was jointly developed by major stock exchanges including BSE, NSE, NCDEX, MCX, and MSE, and it was officially launched by the Securities and Exchange Board of India (SEBI).

Indian Registrar of Record Keeping Agency (IRRA) Platform

  • About: The Investor Risk Reduction Access (IRRA) is a platform that will act as a ‘safety net’ for investors in case of technical glitches faced by a trading member or a stock broker registered with SEBI.
  • The platform is not meant for taking fresh positions or orders.
  • Aim: It will provide investors an opportunity to close open positions and cancel pending orders in case of disruption at the stock brokers’ end.

Need of IRRA Platform

  • The increasing reliance on technology in the securities market has resulted in a rise in glitches within trading members' systems.
  • These technical issues have, in some cases, led to disruptions in trading services, triggering complaints from investors.
  • Such situations put investors with open positions at risk of not having any avenues to close their positions, particularly if markets are volatile.

Securities and Exchange Board of India (SEBI)

  • Establishment: As a statutory body in the year 1992.
  • Headquarters: Mumbai, Maharashtra
  • Nodal Ministry: Ministry of Finance.
  • Aim: To protect the interests of investors in securities and to promote the development of, and regulate the securities market.