Market regulator SEBI has decided to discontinue the Investor Risk Reduction Access (IRRA) platform, stating its redundancy in the current technologically advanced trading environment. Stock exchanges reported that brokers had not utilized the IRRA platform since its launch in October 2023. SEBI mentioned that regulatory enhancements, technological improvements, and the presence of alternative mechanisms have made the IRRA platform unnecessary.
The IRRA framework was introduced in December 2022 to offer brokers an additional access point for trading during system disruptions. However, SEBI noted that operational continuity has significantly improved, reducing the requirement for such a backup platform. The decision to discontinue the IRRA platform was made following unanimous recommendations from stock exchanges after evaluating its usefulness.
SEBI emphasized that brokers now depend on enhanced systems, including robust business continuity and disaster recovery norms, improved cybersecurity measures, and the implementation of the Market Security Operations Centre (M-SoC). The regulator also highlighted advancements in brokers’ trading infrastructure, enabling seamless transitions between primary and alternate sites, and the presence of independent “cold sites” to ensure uninterrupted operations during technical disruptions.
SEBI has instructed stock exchanges to enhance the Contingency Pool Trading facility, which serves as an alternative mechanism during disruptions, while discontinuing the IRRA platform. Additionally, SEBI recently directed index providers of ‘significant indices’ to register within six months under the Index Provider Regulations to promote transparency and accountability in index governance and administration. Entities with indices recognized by the RBI as ‘significant benchmarks’ or ‘authorized benchmarks’ are exempt from this requirement.
