SEBI launches IRRA platform to lower risks for investors
On Monday, SEBI Chairperson Madhabi Puri Buch unveiled the Investor Risk Reduction Access (IRRA) platform at the Bombay Stock Exchange (BSE). Developed by Market Infrastructure Institutions (MIIs) under SEBI's supervision, the IRRA platform is designed to lower the risks for investors if there's a technical issue at the trading member's end, whether it's at the primary or disaster recovery site.
IRRA platform's availability and functionality
The IRRA platform is accessible to trading members who offer internet-based trading and wireless security trading for their investors. However, it will not be available for algorithmic trading and institutional clients. In the event of a technical problem, trading members can activate the platform, which retrieves trades from all trading venues and sends SMS/email alerts to investors using internet trading or wireless technology, along with a link to access IRRA.
Investors can review and manage positions
Investors can use the provided link to check the status of their investments and place orders to square off or close positions. Buch stressed that the main goal of the IRRA platform is to safeguard investors' funds and ensure their positions are protected. She also advised adopting a long-term investment strategy, where there is a greater likelihood of wealth generation rather than losing money daily in the Futures and Options (F&O) segment.
Insights on F&O trading trends
SEBI reported that individual traders in the equity F&O segment grew to 45 lakh at the end of FY22, up from 7.1 lakh during FY19. About 90% of individual traders in this segment experienced net losses during this period.
