The platform to help investors square off or exit their positions whenever a technical glitch prevents them from accessing their broker’s platform will be operational from October 3, 2023, according to a circular issued by the NSE.
The circular was issued by the exchange on September 14, 2022.
The platform, which will be jointly maintained by all the exchanges, will provide the service called Investor Risk Reduction Access (IRRA) as detailed in the market regulator’s circular dated December 30, 2022.
In this circular, the Securities and Exchange Board of India (Sebi) had said, “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.”
The NSE circular said that to ensure seamless business continuity when their Primary (PR) site faces a glitch, trading members (TMs) must maintain a Disaster Recovery (DR) site.
It added, “However, if both the Primary and DR sites are affected and regular business cannot be conducted, affected Trading Members' investors can exit or square off their outstanding positions using a common platform under the guidelines of Investor Risk Reduction Access (IRRA), jointly provided by all Exchanges. TMs who are not required to maintain DR site as per the eligibility criteria prescribed by SEBI, can request to avail the IRRA platform whenever their PR site is not available to conduct regular business due to the aforementioned conditions.”
The exchange said that the platform will be available to the TMs supporting Internet Based Trading (IBT) and Security Trading through Wireless Technology (STWT) for their investors, but it will not be available for algo trading and institutional clients.
It also strongly recommended trading members to keep their clients' contact details (mobile numbers and email IDs) updated in the UCC system of the Exchanges. The circular said, “This information will be used for investor login authorization on the IRRA platform.”
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