I need clarification regarding the current SEBI/Angel One retail algo framework.
Suppose a software developer has developed a proprietary black-box algo. The developer does not take custody of any client’s funds.
The proposed setup is:
• Each client has their own Angel One trading account
• Each client has their own trading capital
• Each client has their own VPS/cloud server
• The VPS has a dedicated/static IP registered with the client’s SmartAPI
• The proprietary algo is installed on that client’s VPS
• The algo places orders only in that client’s own Angel One account
• The developer does not use a common API key or common trading account
• The developer charges a fixed monthly software/technical maintenance fee
• The developer retains ownership of the source code and trading logic
• No guaranteed returns are offered
Under the current 2026 SEBI/NSE/Angel One framework, would this be treated as:
- A Tech-Savvy Investor/client-hosted algo arrangement, or
- A third-party Algo Provider arrangement requiring exchange empanelment/other registration?
Also, does Angel One permit a proprietary third-party black-box algo to run from the individual client’s own static-IP VPS?
Looking specifically for answers from anyone who has actually implemented this structure with Angel One or another Indian broker under the current 2026 rules.