Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has discontinued the Investor Risk Reduction Access (IRRA) platform with immediate effect. The regulator said the platform had become unnecessary because trading systems and technology infrastructure across the market ecosystem have improved significantly.
In a circular issued on Thursday, SEBI said stock exchanges informed the regulator that brokers had not used the IRRA platform since it became operational in October 2023.
The platform was originally introduced in December 2022 as a backup facility to help brokers continue trading operations during technical disruptions or system failures.
Why SEBI Discontinued The Platform?
According to SEBI, several technological and regulatory improvements have strengthened the resilience of India’s trading ecosystem over the past two years.
The regulator said brokers now operate with stronger business continuity and disaster recovery systems, commonly known as BCP-DR mechanisms. Cybersecurity standards and resilience frameworks have also improved significantly.
SEBI added that the implementation of the Market Security Operations Centre (M-SoC) has further strengthened the overall security and operational stability of trading platforms.
The regulator noted that brokers today can smoothly switch between primary systems and backup locations in case of disruptions. Independent “cold sites” are also available to ensure uninterrupted operations during emergencies or technical failures.
Exchanges Recommended Closure
SEBI said stock exchanges unanimously recommended discontinuing the IRRA platform after reviewing its usefulness and current market requirements.
Although the IRRA system has been withdrawn, SEBI has instructed stock exchanges to continue improving the Contingency Pool Trading facility, which still serves as an alternative support mechanism during technical disruptions.
Focus On Transparency In Financial Markets
Meanwhile, SEBI has also introduced fresh rules for index providers. Earlier this week, the regulator directed providers of “significant indices” to register with SEBI within six months under the Index Provider Regulations.
The move aims to improve transparency, accountability and governance standards in the administration of market indices.
However, index providers whose benchmarks are already notified by the Reserve Bank of India (RBI) as “significant benchmarks” or “authorised benchmarks” have been exempted from this requirement.
