SEBI new algo trading rules 2025 - what changed?

algotrader

User: RetailTrader_Mumbai
Subject: SEBI new algo trading rules 2025 - what changed?
Can someone explain the new SEBI algo trading regulations that came out in Feb 2025? I heard retail investors can now do algo trading legally but need to understand what are the actual requirements. Do I need special approval or my broker will handle everything?

algotrader

Reply by: ComplianceExpert_NSE
SEBI released framework in Feb 2025 for retail algo trading through brokers. Main changes are: brokers need exchange approval for each algorithm, all algo orders must have unique exchange ID for audit trail, and static IP is mandatory. Your broker will handle most compliance but you need to provide static IP address and complete 2FA authentication. Implementation deadline is August 2025.

algotrader

Reply by: AlgoTrader_Bangalore
also important - open APIs are now banned, only broker-provided APIs with unique keys allowed. This means platforms like Tradetron and similar ones had to change their model completely. If your strategy executes more than 10 orders per second it needs seperate registration with exchange. For most retail traders this wont be issue though.