SEBI Ends Investor Risk Reduction Access Platform for Stock Brokers with Immediate Effect

The Securities and Exchange Board of India (SEBI) has discontinued the Investor Risk Reduction Access (IRRA) platform, saying the system is no longer required due to improvements in operational and technology frameworks used by brokers and exchanges. 

As per PTI reports, the platform was launched on October 1, 2023, following a circular issued in December 2022. It was created to provide brokers with an alternative trading access route during technical disruptions in their trading systems. 

Exchanges Reported Platform Was Unused 

SEBI said stock exchanges informed the regulator that the IRRA platform had not been accessed by brokers since its operationalisation.  

According to the exchanges, the mechanism had become “structurally redundant” because existing systems were already handling continuity requirements. 

Operational Frameworks Strengthened 

In its circular, SEBI said multiple measures introduced over the past few years have strengthened the resilience of stock brokers and trading systems. 

These measures include Business Continuity Planning and Disaster Recovery (BCP-DR) norms, cyber security and cyber resilience frameworks, and the implementation of the Market Security Operations Centre (M-SoC). SEBI also referred to improvements made in handling technical glitches. 

The regulator noted that brokers now have systems allowing seamless switching between primary and alternate operating sites during disruptions. Independent cold sites have also become part of continuity arrangements followed by market participants. 

Existing Contingency Facility Remains Active 

SEBI said stock exchanges already provide a backup mechanism through the Contingency Pool Trading facility. The framework allows brokers to square off client positions during disruptions through terminals connected directly to exchange trading platforms. 

According to the regulator, the facility has been used on several occasions in recent years.  

Exchanges Directed to Review Systems 

While withdrawing the IRRA platform, SEBI directed stock exchanges to review and further strengthen the Contingency Pool Trading framework. 

The regulator said the decision was taken after considering stakeholder feedback, existing continuity systems, and technological developments introduced across the securities market in recent years. 

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Conclusion 

SEBI said existing business continuity systems and contingency trading facilities are currently sufficient to manage disruptions faced by stock brokers and exchanges. 

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