The Securities and Exchange Board of India (Sebi) has discontinued the Investor Risk Reduction Access (IRRA) platform for stock brokers with immediate effect, stating that the system has become redundant due to enhanced cybersecurity, disaster recovery, and business continuity mechanisms in the securities market.
Background of IRRA Platform
Launched on October 1, 2023, the IRRA platform was designed to provide brokers with an alternative access route for trading during disruptions in their trading services. However, Sebi noted that multiple technology-driven reforms implemented in recent years have significantly improved the operational resilience of stock brokers.
Key Reforms Enhancing Resilience
These reforms include Business Continuity Planning and Disaster Recovery (BCP-DR) norms, stronger cybersecurity and cyber resilience frameworks, implementation of the Market Security Operations Centre (M-SoC), and improvements in the technical glitch management framework. According to the regulator, brokers have also adopted advanced technological systems enabling smooth transition between primary and alternate operational sites during disruptions, alongside the emergence of independent cold sites for business continuity.
Backup Mechanisms Already in Place
Sebi further highlighted that stock exchanges already provide a backup mechanism through the Contingency Pool Trading facility, which allows brokers to square off clients' open positions during operational disruptions via dedicated exchange-connected terminals. The regulator stated that exchanges informed Sebi that the IRRA platform had become "structurally redundant" as brokers had not used it since its launch.
"Since its inception, the platform has not been accessed by the stock brokers, largely due to the implementation of robust regulatory measures, significant technological innovations within trading operations, and the availability of the Contingency Pool Trading facility," Sebi said in its circular. "Accordingly, based on stakeholder feedback and the aforementioned factors, it has been decided to discontinue the IRRA platform with immediate effect."
Sebi has also advised stock exchanges to further review and strengthen the Contingency Pool Trading framework to ensure continued operational resilience.
