A platform, jointly managed by the exchanges, which will help investors square off or exit their positions when their broker’s platform faces a tech glitch will be accessible to trading members (TMs) such as brokers from October 3, 2023.
The platform will provide Investor Risk Reduction Access (IRRA) service, as detailed in the circular issued by the Securities and Exchange Board of India (Sebi) on December 30, 2022.
Also read: Tech glitch on broker platform? Investors can access exchanges-run service from October 3
The trading members have been asked to keep their clients’ contact details (mobile number and email IDs) updated in the Unique Client Code (UCC) system of the exchanges. This is because this information will be used for investor login authorisation on the IRRA platform.
How will this work?
1. Once the affected TM requests or qualifies for invocation of IRRA, post completion of invocation process, IRRA platform will send SMS and email notifications to all the UCCs of the affected Trading Member, informing the investors about the availability of the IRRA platform for exiting or squaring off their open positions.
2. Exchanges will display a link to download IRRA mobile application and to access the web-based trading platform on their respective websites. Similarly, TMs are also requested to mandatorily display the IRRA platform links on their respective websites.
3. The SMS communication will also include a link to download the IRRA mobile application and URL to access web-based trading platform, allowing investors to log in to the IRRA platform.
4. Investors can login using their UCC or PAN along with the OTP sent to their registered mobile number and email id.
5. Once logged in, investors can monitor, cancel pending orders and square off open positions using the ‘Order book’ and ‘Net position screen’, respectively. The IRRA platform will fetch the respective trading day’s orders, trades, from respective Exchanges, and previous end-of-day net open positions across Exchanges from Clearing Corporations.
6. The platform allows trading members access to an Admin Terminal, which allows them to monitor their investors' actions. With this Admin Terminal, the trading members can square-off orders or cancel pending orders on behalf of its investors or for proprietary account.
Even on the IRRA platform, trading members will be responsible for all their clients' activities, including clearing and settlement and margin obligations.
Similarly, the Clearing Member (CM) of the affected TM shall continue to be responsible for all the activities of their clients on the IRRA platform with respect to all obligations including clearing and settlement and margin requirements, said the circular.
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