Q. With reference to Investor Risk Reduction Access (IRRA) Platform, consider the following statements:
1.It is a platform that provides insurance coverage to investors in case of investment losses.
2.IRRA can be invoked by trading members when there’s a technical glitch at their end across exchanges..
Which of the statements given above is/are correct?
Explanation –
Statement 1 is incorrect. The IRRA Platform is not an insurance platform that provides coverage to investors in case of investment losses. It is a platform developed to reduce risks faced by investors in case of technical glitches at the end of trading members or stock brokers registered with SEBI. It will provide investors an opportunity to close their open positions and cancel pending orders in case of technical glitches or outages which render the trading member’s site inaccessible.
Statement 2 is correct. IRRA can be invoked by trading members when there’s a technical glitch at their end across exchanges from both – the primary site and disaster recovery site. Even stock exchanges can suo moto initiate the service, if needed, irrespective of any such request by the trading members.
Source: ForumIAS
