BCI rules do not permit advertisement or solicitation by advocates or their firms. This website is for information only. See Disclaimer

SEBI introduces further investor protection measures

Featured in
logo
post-img-regstreet

SEBI introduces further investor protection measures

Subsequent to the SEBI Board Meeting on December 20, 2022 during which SEBI introduced several enforcement and regulatory measures (readers may read more on the same at: https://lnkd.in/dtziktpK), SEBI on December 30, 2022, notified the framework for the Investor Risk Reduction Access (IRRA) platform to be operationalized on or before October 01, 2023 by clearing members and bourses. The platform inter alia provided some key features for the platform, including that:

1. The platform shall be developed by stock exchanges to allow investors to square off / close the open positions and / or cancel pending orders in case of disruption of trading services provided by the Trading Member (TM);

2. The enablement of IRRA platform shall be either on request by TM or suo motu in case of disruption across all exchanges;

3. The investors may access IRRA platform through a Unique Client Code or their PAN card where they may cancel or square off their positions but shall not execute any action which increases the risk;

4. The TM shall get access through Admin Terminal (which shall be on different server if disruption caused due to cyber attack), this shall allow TM to execute transaction on behalf of clients if they so order, and evidence of this shall be maintained by the TM;

5. The TM shall be throughout liable for settlement and margin requirements on IRRA;

6. The Reverse Migration shall be initiated on request of the TM, once the system is retrieved;

7. The periodic testing for IRRA platforms shall be conducted by exchanges; and

8. SEBI may extend trading hours in case of disruption after cutoff time for establishment of IRRA.

The above framework may be read in context with the decision of the Delhi High Court in Reliance Securities v. Vivek Sharma (2010 SCC OnLine Del 3748) where the court held that broker is liable for loss from technical glitches, but where the technology is constantly being developed and being advanced, with multiple instances of even stock exchangesโ€™ systems going down, more than fixation of liability, an awaited step was to have alternate mechanism for risk mitigation.

A copy of the circular is enclosed hereinbelow.

Any comments are welcome by Regstreet Law Advisors at info@regstreetlaw.com

Prepared by: Tarun Toprani and Varun Matlani

Latest RegPost

๐‚๐จ๐ฆ๐ฉ๐ž๐ง๐ฌ๐š๐ญ๐ข๐จ๐ง ๐œ๐ฅ๐š๐ข๐ฆ๐ฌ ๐ฉ๐ฅ๐ฎ๐ง๐ ๐ž ๐š๐ฌ ๐’๐ž๐›๐ข ๐œ๐ซ๐š๐œ๐ค๐๐จ๐ฐ๐ง ๐ข๐ง๐ญ๐ž๐ง๐ฌ๐ข๐Ÿ๐ข๐ž๐ฌ

Read More

๐ƒ๐ข๐ ๐๐Œ ๐Œ๐จ๐๐ข ๐š๐ง๐ ๐€๐ฆ๐ข๐ญ ๐’๐ก๐š๐ก ๐›๐ซ๐ž๐š๐ค ๐š๐ง๐ฒ ๐’๐ž๐›๐ข ๐ซ๐ฎ๐ฅ๐ž ๐›๐ฒ ๐ฉ๐ซ๐ž๐๐ข๐œ๐ญ๐ข๐ง๐  ๐ฌ๐ญ๐จ๐œ๐ค ๐ฆ๐š๐ซ๐ค๐ž๐ญ ๐ซ๐š๐ฅ๐ฅ๐ฒ ๐š๐Ÿ๐ญ๐ž๐ซ ๐ž๐ฅ๐ž๐œ๐ญ๐ข๐จ๐ง๐ฌ?

Read More

๐“๐ก๐ž ๐ญ๐ฒ๐ซ๐š๐ง๐ง๐ฒ ๐จ๐Ÿ ๐œ๐ข๐ซ๐œ๐ฎ๐ฅ๐š๐ซ๐ฌ ๐ฆ๐ฎ๐ฌ๐ญ ๐ž๐ง๐ ๐ญ๐จ ๐ž๐ง๐ฌ๐ฎ๐ซ๐ž ๐๐ž๐ฆ๐จ๐œ๐ซ๐š๐ญ๐ข๐œ ๐ฅ๐ž๐ ๐ข๐ญ๐ข๐ฆ๐š๐œ๐ฒ ๐จ๐Ÿ ๐ฅ๐š๐ฐ๐ฌ ๐š๐ง๐ ๐ž๐š๐ฌ๐ž ๐จ๐Ÿ ๐๐จ๐ข๐ง๐  ๐›๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ.

Read More

๐’๐„๐๐ˆ ๐œ๐จ๐ง๐ฌ๐ข๐๐ž๐ซ๐ฌ ๐š๐ฅ๐ฅ๐จ๐ฐ๐ข๐ง๐  ๐ˆ๐ง๐๐ข๐š๐ง ๐Œ๐ฎ๐ญ๐ฎ๐š๐ฅ ๐…๐ฎ๐ง๐ ๐ข๐ง๐ฏ๐ž๐ฌ๐ญ๐ฆ๐ž๐ง๐ญ๐ฌ ๐ข๐ง ๐Ž๐ฏ๐ž๐ซ๐ฌ๐ž๐š๐ฌ ๐Œ๐ฎ๐ญ๐ฎ๐š๐ฅ ๐…๐ฎ๐ง๐๐ฌ ๐ฐ๐ก๐ข๐œ๐ก ๐ก๐š๐ฌ ๐ž๐ฑ๐ฉ๐จ๐ฌ๐ฎ๐ซ๐ž ๐ญ๐จ ๐ˆ๐ง๐๐ข๐š๐ง ๐ฌ๐ž๐œ๐ฎ๐ซ๐ข๐ญ๐ข๐ž๐ฌ

Read More

๐ˆ๐๐๐ˆ ๐ข๐ฌ๐ฌ๐ฎ๐ž๐ฌ ๐ƒ๐ข๐ฌ๐œ๐ฎ๐ฌ๐ฌ๐ข๐จ๐ง ๐ฉ๐š๐ฉ๐ž๐ซ ๐Ÿ๐จ๐ซ ๐’๐ญ๐ซ๐ž๐ง๐ ๐ญ๐ก๐ž๐ง๐ข๐ง๐  ๐ˆ๐ง๐Ÿ๐จ๐ซ๐ฆ๐š๐ญ๐ข๐จ๐ง ๐”๐ญ๐ข๐ฅ๐ข๐ญ๐ข๐ž๐ฌ

Read More

Cateories