Recent regulatory changes by the National Stock Exchange (NSE) and SEBI will reshape algorithmic (algo) trading in India. Every MyAlgoMate user—whether you’re a retail trader, a developer building your own logic, or a platform customer—must comply with these rules by October 1, 2025.

Below is a clear, actionable guide, integrating important scenarios into the main content for practical clarity.

1. Static IP Address Requirement

All algo/API trading must be executed from a static (fixed) public IP address for tighter oversight.

• To obtain a static IP:
  • Contact your ISP or data center for a static public IP
  • Or, subscribe to a cloud machine with a static IP (e.g., MyAlgoMate Cloud or any reputable vendor)
• NSE allows you to register one primary and one backup static IP per application. This backup option is particularly useful for minimizing downtime or connectivity breaks.
• You and your broker are responsible for static IP registration. MyAlgoMate does not register IPs for you.

If you only place a few trades or trade for yourself, arrange a static IP using one of the above means and ensure your broker registers it. Not complying may mean loss of API access or rejected orders.

Deploying Algos on AWS or Other Cloud Services

When deploying on AWS or similar cloud platforms, you will still encounter static IP overhead—this overhead is unavoidable due to exchange regulations. You must ensure the cloud instance provides a static public IP, which you will register with your broker.

Dealing with Travel or Multiple Locations

If you travel frequently or operate your algo from various locations, you can’t skirt the static IP requirement—a trader is permitted to change the registered static IP no more than once per week, which offers some flexibility but prevents frequent, on-the-fly switching. For scenarios where you need access from two places, registering both a primary and a secondary static IP is permitted (as outlined in NSE’s circular). However, registering more than these, or making frequent changes, is not allowed and defeats the regulation’s purpose.

2. Order Rate Limit: 10 Orders Per Second

Trading strategies must not place more than 10 orders per second via broker APIs.

• Exceeding this threshold prompts an “429 – Too Many Requests” error and blocked orders.
• The vast majority of retail and discretionary users do not approach this limit.

3. When Is a Static IP Actually Required?

Static IP is strictly required for order placement and modification actions. If you are using the system only to receive tick data (market feeds) and not placing orders, this regulation does not require you to register a static IP for that connection. Only the systems tied to order routing/execution APIs need this extra layer of oversight.

4. Registration, Empanelment & Black-Box Algo Rules

Empanelment of Algo Providers

All third-party algo providers must be empanelled with the exchanges in order to offer services. MyAlgoMate handles all empanelment and compliance processes to ensure you access our platform within regulatory norms. Always verify empanelment when using any third-party tool to avoid connectivity blocks from your broker.

SEBI-Registered RA Requirement for Black-Box Algos

Black-box algos (with hidden logic) can only be distributed by SEBI-registered Research Analysts (RA). White-box algos with transparent logic can be used from empanelled, non-RA vendors, if exchange-approved.

For Tech-Savvy Traders Building Their Own Algos

You may automate your trading for personal use without empanelment or RA registration if you don’t exceed the 10 orders/sec limit. Once your volume is higher, you’ll need to have your strategy registered via your broker, and all such high-frequency algos must run from broker-approved infrastructure.

Order Placement Volume and Registration

Any strategy (including your own) that places over 10 orders per second must be registered via your broker with the exchange—requiring auditor and RMS documents. Approval is needed before production use, and these must run on approved infrastructure.

Action Checklist

• Secure and register your static IP (or a cloud machine with a static IP) with your broker.
• Only use algo platforms from empanelled providers (MyAlgoMate handles empanelment).
• Use black-box algos only from SEBI-registered RAs.
• If coding your own algo, stay under the 10 orders/sec threshold—or go through the full registration process with your broker.
• Register a backup static IP for redundancy, if needed.
• For travel or changing work locations: remember, you can update your static IP no more than once a week or rely on a pair of registered IPs for continuity.

All requirements must be fully in place by October 1, 2025.

Stay connected with MyAlgoMate:
Algo trading regulations often evolve. We’re monitoring every exchange and SEBI update—follow our blog, email alerts, or platform notifications so you’re always up-to-date.

— Team MyAlgoMate

Disclaimer: This guidance summarizes major NSE and SEBI rules as of July 31, 2025. Consult your broker or compliance advisor for assistance with your specific situation.