In a significant step to provide protection to investors fund, the Securities and Exchange Board of India (Sebi) Chairman Madhabi Puri Buch launched the Investor Risk Reduction Access (IRRA) platform at the Bombay Stock Exchange (BSE) on Monday.
The IRRA platform is an initiative conceptualised and implemented by Market Infrastructure Institutions (MIIs) under the able guidance of SEBI to reduce risks faced by investors in the eventuality of technical glitch at trading member end at both Primary site and disaster recovery site.
IRRA platform is available to the trading members supporting internet-based trading and security trading through wireless technology for their investors. However, it would not be available for algo trading and institutional clients.
It can be invoked by trading members when they are faced with a technical glitch at their end. On invocation, after basic checks, the platform downloads trades of trading member from all the trading venues and sends SMS/email to investors using internet trading or wireless technology along with a link to access IRRA.
Investors using this link can review of status of their investment and place orders for squaring off or closing positions.
Sebi chairperson Madhabi Puri Buch said she is "confused and surprised" at investor interest in Futures and Options (F&O) despite 90 per cent of individuals losing money in the segment.
Speaking at the launch of the Investor Risk Reduction Access (IRRA) platform at BSE, Buch said that the objective is to protect the investors fund and to ensure the position of investors are protected.
She further added that one should adopt a long-term approach to investments, where there is a high probability of wealth creation rather than losing money on a daily basis in the F&O segment.
According to Sebi, the number of individual traders in the equity F&O segment rose 500 per cent to 4.5 million at the end of FY22, from 7.1 lakh during FY19. Nine out of 10 individual traders in the equity F&O segment incurred net losses during both the years.
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