A Comprehensive Overview of NSE’s New Retail Algo Trading Framework

why do sebi always comes up with dumb and irritating ideas. if static line goes down we cant use backup line to trade? can we register two static line from different internet provider with broker?

if above is not possible, can we atleast exit the algo trades via kite using non static line without being penalized ?

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yes, need to have 2 and z people have said that they will allow 2.
I will use AWS and home internet.

We can always exit manually. Only api + order create/cancel/modify are affected from what i understand.

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Maybe use multiple accounts/brokers or induce a 1 sec delay

A retail algo trading regulatory framework was needed and welcome in order to manage risk. But these frequent revisions on how to actually implement the framework and extensions for over 1 year after the initial Feb circular shows that adequate prior discussion about implementation granularities was not held with ALL stakeholders like NSE, brokers, and vendors, i.e. the entire trading pipeline.

There was some token feedback invited about the draft rules but clearly it was not detailed enough on the implementation aspect.

In an ideal world SEBI would introspect on how its own frequently changing regulations are having a chilling effect on markets and profitability. Regulatory risk is super high in India and it’s hard to hedge. But let me guess, in a few weeks or months we’ll see more of this lot size tweaking or weekly expiry options removal or some other lever that they want to fiddle with and restrict adults on what they can do with their hard earned money.

I find it interesting that 0DTE options have been introduced in Gift Nifty though. Is this not a departure from SEBI’s previous behaviour of ‘restrict, restrict, restrict’? Or are 0DTE not tradable by retailers (so its kosher)?

@siva is it allowed to give api access to dynamic ip’s for non trading purpose?
so manual traders can use api to read chart data and ticks to setup price and condition alerts.
if that doesn’t violate sebi new rule, then a new api plan with real time data and without trading function will be helpful for dynamic ip users.

Yes, static IP requirement is only for placing algo orders.

so existing 500rs plan continues to provide ticks and chart datas without registering static ip?

Yes.

thats nice ty

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@siva Here you are saying that only algo orders exceeding the threshold of 10 orders per second need a static IP. But the App profile page says ’ * Starting April 1, 2026, API orders not placed from a registered static IP will be rejected as per [SEBI regulations]. You can now register your static IP from your [profile page].’

I am confused. I am not placing high frequency orders. Still do I have to go for a static IP?

Yes, static IP is mandatory for all API orders, registration at exchange only if ops greater than 10.

@siva regarding static IP, how frequently we can change the registered ip? is there any guideline on that?

Okay thanks for the clarification. Here are some more queries:

  • Does the IP need to be different for every zerodha account?
  • I have heard that family accounts can have the same IP but how’s that decided which accounts belong to a family?
  • Which all endpoints need to be originating from that static IP? Just order firing? Position fetching? Historical data?

Believe once a week, but in extreme cases it can be changed within a week also upon writing to broker with reason.

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Yes, should be unique.

Yeah, tough to decide so we are going with unique for all to begin with.

Only for order placing.

@siva i have added the static ip in the profile, how do i test if everything is fine and nothing more needs to be done?
also, shall we expect any specific error codes or exceptions when the API request is failed due to IP compliance issue? is there any developer documentation around it?

This is how Kotak does it

If i enter static ip and face an issue, Can i remove it ? Will it take effect immediately ?
Else how to test this out without risking stability for live trades.

Let me get this checked with our team, anyhow tomorrow we will be doing a post on the process with FAQ, believe all these will be addressed.

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Do you support ipv6?