Retail algo-trading compliance, in plain language

SEBI’s February 2025 circular brought retail algorithmic trading into a formal framework. NSE published the implementation standards in May 2025, an FAQ in November 2025, and SEBI later set a phased timeline that makes the framework applicable to all stock brokers from 1 April 2026, so these rules are now in force.

This hub distills what those documents mean for a retail trader who connects to a broker API to run algos, whether self-coded or via a no-code tool, and where a static IP fits in. We quote the circulars and link the originals; we do not reproduce them.

Not legal or investment advice. This page is general information to help you understand the SEBI and NSE framework for retail algorithmic trading. It is not legal, compliance, tax, or investment advice, and it is not a recommendation to trade or to use algorithms. Rules change and have nuances, so always verify against the official SEBI and NSE circulars (linked on this page) and with your stockbroker before you act. AlgoIP provides internet infrastructure (a dedicated static IP / proxy) only. We do not generate, place, modify, or execute orders or trades, we make no trading decisions, and we do not provide trading strategies, signals, or advice. We are not a stockbroker, trading member, exchange-empanelled algo provider, or SEBI-registered intermediary. Last reviewed: June 2026.

How AlgoIP helps

AlgoIP provides the one piece you cannot get from your broker: a dedicated static IPv4 (or IPv6), mapped to your account alone, that you whitelist with your broker, with an optional second IP for redundancy. Because it is dedicated to one account, not shared or rotating, it fits the rule that a static IP maps to one client at a time and supports identification and traceability. AlgoIP supplies the static IP only; whitelisting it with your broker is your step, and your broker and the exchange handle registration, tagging, OAuth and 2FA, risk management and the audit trail.

Key rules at a glance

  1. A broker-whitelisted static IP for API algo access. A broker must not permit open APIs and must allow API access only through a unique vendor-client-specific API key and a static IP whitelisted by the broker, to ensure identification and traceability. Per the NSE FAQ, this client static IP applies to the tech-savvy investor using the API to place orders. Source: SEBI para I(d); NSE para I(e); NSE FAQ Q3, Q6.
  2. Primary plus an optional secondary IP. A client may give one static IP (primary), or add a second static IP (secondary) for connectivity redundancy. Multiple API keys can map to the same or to separate primary/secondary IPs. Source: NSE para A.2, A.3.
  3. One IP per client, with family sharing allowed. A static IP can be mapped to only one client at a time, but it may be shared between clients of one family, defined as self, spouse, dependent children and dependent parents, with a written request, registered-email request or a 2FA-validated request to the broker. Source: SEBI para I(c); NSE para A.7.
  4. Change your mapped IP at most once a calendar week. Clients can update their mapped static IP as needed, but not more than once a calendar week. In extraordinary circumstances you can ask your broker after you have already changed it that week. A stable, dedicated static IP means you rarely need to. Source: NSE para A.6.
  5. OAuth-only authentication plus two-factor. Brokers must use OAuth (Open Authentication) based authentication only, and authenticate API access through two-factor authentication. Source: SEBI para I(d); NSE para I(c), I(d).
  6. Daily session logout. All API sessions must be compulsorily logged out every day before the start of the next trading day. Source: NSE para A.8.
  7. The orders-per-second threshold (TOPS). The Threshold Orders Per Second is initially set at not exceeding 10 orders per second per exchange or segment. If your order flow stays below it you do not need to register the algo; above it you must register the algorithm with each exchange where it is used. Brokers may set a lower per-client limit. Source: NSE para B.2, C.1, F.
  8. Every algo order is tagged for audit trail. All algo orders, below and above the threshold, are tagged with a unique identifier provided by the exchange in order to establish an audit trail. Source: SEBI para I(b), II(b); NSE para G.
  9. Records kept for at least 5 years. Audit-trail data for API, IBT and STWT orders must be available for at least 5 years, with identification of the actual user for all such orders and trades. Source: NSE para I(a).
  10. Broker is principal, algo providers are empanelled agents. For algo trading through APIs the broker is the principal and any algo provider or vendor acts as its agent. The broker is solely responsible for grievances and for monitoring APIs, and any algo provider must be empanelled with the exchange. Source: SEBI paras I(a), II(c), III; NSE para E.
  11. Exchange kill switch. Exchanges retain the ability to use a kill switch on orders from a particular algo id, and have the authority to kill any rogue algo that is impacting the market. Source: SEBI para IV(a)(iii); NSE para J.3.
  12. Direct Market Access is exempt. These standards do not apply to trading under Direct Market Access (DMA), which remains governed by the relevant provisions. Source: NSE para J.1.

Frequently asked questions

Does SEBI require a static IP for algo trading?

For a retail trader who runs their own algorithms through a broker trading API (a "tech-savvy investor"), yes. A broker may allow API access only through a unique API key and a static IP whitelisted by the broker, and the NSE FAQ states the client static IP is required in the case of a tech-savvy investor using the API. It is not imposed on every retail client, and trading through a broker-hosted vendor platform uses the broker server IP. Source: SEBI para I(d); NSE para I(e); NSE FAQ Q3, Q6, Q10.

Is a static IP mandatory for ALL retail clients using an API?

No. The NSE FAQ is explicit that a client static IP is required only in the case of a tech-savvy investor using the API. If you self-host your algo logic and connect via the broker API, you need a static IP; if you only trade through a broker-hosted or empanelled-vendor platform, the broker server IP is used. Source: NSE FAQ Q6, Q10.

I do not write code, I use a no-code GUI, web, or mobile algo tool. Do I still need a static IP?

Often, yes, and it depends on where the API connection to your broker originates. If the tool connects from your end (a desktop app on your PC or laptop, a mobile app, a web tool, or a tool you run on your own cloud VM or VPS), the orders leave from your machine, so they must come from your whitelisted static IP, even though you wrote no code. If instead a vendor platform hosted on the broker infrastructure makes the connection server-side, the broker server IP is used. In practice many clients end up on the first path because a vendor often cannot host its infrastructure at every broker. The "in practice" part is industry observation, not a SEBI or NSE mandate, so confirm your setup with your broker and vendor. Source: NSE FAQ Q5, Q10 (regulatory); market practice (clearly labelled).

Can I use one static IP, or do I need two?

You may register one static IP (primary). You may add a second static IP (secondary) for connectivity redundancy. Multiple API keys can map to the same or to separate primary and secondary IPs. Source: NSE para A.2, A.3.

How often can I change my registered static IP?

Not more than once a calendar week. In extraordinary circumstances you can ask your broker after you have already changed it that week. Source: NSE para A.6.

Can my family share one static IP?

A static IP maps to one client at a time, but it can be shared within a family, defined as self, spouse, dependent children and dependent parents, with a written request, registered-email request or a 2FA-validated request to the broker. Source: SEBI para I(c); NSE para A.7.

What is the 10 OPS or TOPS threshold?

The Threshold Orders Per Second is initially set at not exceeding 10 orders per second per exchange or segment. Below it you do not need to register the algo; above it you must register the algorithm with each exchange where it is used. Source: NSE para B.2, C.1, F.

Do I have to register my algo?

Only if your order flow exceeds the threshold (above about 10 OPS), or per your broker lower limit. Registration is done through your broker, who forwards details to the exchange, which issues an algo id used to tag your orders. Algos by empanelled providers and broker-built algos are registered too. Source: NSE paras C.1 to C.2, D, E, F.

Does AlgoIP make me SEBI-compliant?

No. AlgoIP provides one specific input, a dedicated static IP you whitelist with your broker. Registration, order tagging, OAuth and 2FA, risk-management checks and the audit trail are handled by your broker and the exchange. Always verify the current rules with your broker and the official circulars. Source: SEBI; NSE; NSE FAQ.

Are market or IOC orders allowed via algo?

Per NSE, algo orders with order type Market Order are not permitted, and Immediate-Or-Cancel and Market orders are not allowed to be placed via algo in the Commodity segment. Check the current order-type rules with your broker. Source: NSE FAQ Q11, citing NSE/MSD/67753.

When did these rules take effect?

SEBI issued the framework on 4 February 2025. The original 1 August 2025 start was extended, first to 1 October 2025, then phased in via a glide path, and the framework, implementation standards and operational modalities apply to all stock brokers with effect from 1 April 2026. NSE published its implementation standards on 5 May 2025 and an FAQ on 3 November 2025. Always check the current position with your broker. Source: SEBI (extension); NSE; NSE FAQ.

Official sources

The SEBI framework applies to all recognized stock exchanges. NSE, BSE and MCX each issued implementation standards in May 2025 carrying the same requirements. The exact clauses quoted on this page are from NSE; MCX (CTCL/235/2025) is materially identical and BSE issued its own (Notice 20250506-3).

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