ProStocks Blog

Blog
Hits: 146

Regulatory Update · API Trading

SEBI and Exchanges’ regulations have changed how API-based trading works in India. If you use APIs to automate your trades, here is what you need to know.

Effective: 1 April 2026
These regulations are effective from 1st April 2026. Complete the required compliance steps to continue uninterrupted API trading.

Why is this changing?

SEBI, along with the stock exchanges, has introduced a new framework to make automated and algorithmic trading safer and more transparent for retail investors.

API-based order placement is now formally recognized as algorithmic trading and must comply with regulatory standards. Exchanges have also issued detailed implementation guidelines for API-based trading access.

Any order placed automatically through an API is treated as algorithmic trading under the regulatory framework.

Who does this apply to?

Self-coded strategies

You write your own scripts or programs to place orders automatically through APIs.

Signal-based automated trading

You use systems where predefined conditions or signals trigger order placement automatically.

Not Affected

If you place orders manually through trading platforms — mobile, web, or desktop — including Cover, Bracket, and Basket orders, these rules do not apply.

Pre-requisites for API Trading

  • You must obtain a static IP address
  • The static IP must be pre-disclosed and mapped to your API access
  • API access will be permitted only from mapped static IP(s)
  • Up to two static IPs (primary and secondary) can be provided for redundancy
  • Secure authentication and two-factor authentication are mandatory
  • API sessions terminate at logout or end of trading day
  • Static IP cannot be shared across multiple clients (except family accounts)
  • Static IP is not required for platform-based order features
  • Market orders will not be accepted through API

Order Speed Limits

  • Up to 10 orders per second → No registration required
  • Above 10 orders per second → Registration and system audit required
Orders exceeding limits without approval will be rejected automatically.

Algo Tagging

All API-based orders must carry identifiers to ensure traceability under the regulatory framework.

Checklist

  • Static IP obtained
  • Static IP disclosed
  • Static IP mapped to API
  • 2FA enabled
  • Order speed limits understood

Frequently Asked Questions

Do I need a static IP if I only use API for market data?
We do not provide API access solely for market data or broadcast.

Can family members share the same static IP?
Yes, as per SEBI-defined family accounts.

What happens if order speed limits are exceeded?
Orders will be rejected automatically and may lead to restrictions.

Will existing API credentials continue to work?
Yes, subject to static IP disclosure and verification.

Tags:
Comment (0) Hits: 146
Blog
Hits: 362

Markets don’t just react to events — they react to uncertainty. One of the most powerful indicators of that uncertainty is the India VIX, often called the “fear index”.

The India VIX does NOT tell you whether markets will go up or down — it tells you how volatile and uncertain markets are expected to be.

What is India VIX?

The India VIX measures expected market volatility based on options pricing. During events like wars, geopolitical tensions, or economic shocks, traders expect higher volatility — and the VIX rises.

Recent Movement in India VIX

Date Open High Low Close % Change
27-Feb13.0614.0411.2013.704.88%
02-Mar13.7017.8112.8317.1325.01%
04-Mar17.1321.3716.9721.1423.41%
05-Mar21.1421.1417.3017.86-15.52%
06-Mar17.8620.1417.2019.8811.33%
09-Mar19.8824.4919.2223.3617.51%
10-Mar23.3623.3618.7818.91-19.06%
11-Mar18.9121.3917.2421.0611.40%
12-Mar21.0622.3620.8221.522.17%
13-Mar21.5222.8821.2522.655.26%
16-Mar22.6522.8819.8221.60-4.61%
17-Mar21.6021.6019.6319.79-8.39%
18-Mar19.7919.7918.5918.72-5.41%
19-Mar18.7223.2018.7222.8021.78%
20-Mar22.8023.1421.6922.810.03%
23-Mar22.8127.1722.8126.7317.17%
24-Mar26.7326.7324.6324.74-7.44%
25-Mar24.7425.2324.1424.64-0.40%

How to Interpret India VIX Levels

  • Below 15: Stable markets, low volatility
  • 15–20: Mild uncertainty
  • 20–30: High volatility — critical zone
  • Above 30: Crisis-level panic (seen in 2008 & COVID)
Current VIX levels (20–27 range) indicate markets are in a high-volatility zone, but not yet in panic mode.

What VIX Is Signalling Right Now

  • Markets expect uncertainty, but not a prolonged crisis
  • Volatility spikes show reactions to news flow around the war
  • Even if the war cools down, secondary effects (like oil prices) may keep volatility elevated

What Should Investors Do?

  • Consider hedging strategies in volatile markets
  • Re-evaluate asset allocation between equity and debt
  • Reduce exposure to high-beta stocks
  • Focus on stability and capital preservation in the short term
  • Keep an eye on FPI flows and currency pressure

Key Takeaways

  • India VIX reflects fear — not direction
  • Current levels show elevated volatility but not panic
  • Markets may remain unstable even after geopolitical tensions ease
  • Portfolio discipline matters more than aggressive positioning right now
Disclaimer: This content is for informational purposes only and should not be considered investment advice. Investors should consult their financial advisors before making any investment decisions.
Comment (0) Hits: 362
Blog
Hits: 213

Important Market Update
Equity Market Update

The stock exchange has introduced a new process called the Closing Auction Session, or CAS. This changes how the final closing price of certain shares will be determined. Here is a simple explanation of what this means and what clients should keep in mind.

Notice Date: 19 March 2026 Segment: Equity For Client Awareness

In simple words

For certain shares, the closing price will now be discovered through a short auction-style process near market close instead of depending only on the last trade of the day.

Why this matters

The closing price is important for valuation, market analysis and reference purposes. A structured process helps make it more fair and more transparent.

What is the Closing Auction Session?

The Closing Auction Session, or CAS, is a special process introduced near the end of the trading day to determine the closing price of certain shares in a more systematic way.

Many investors and market participants look at the closing price as an important benchmark. It is used for valuation, settlement reference, index calculations and general market analysis. Because of this, the exchange wants the closing price to reflect actual market demand and supply as fairly as possible.

Simple understanding: instead of the market close depending only on one final trade, the exchange will try to discover a more balanced closing price through a short auction-based matching process.

Which shares will this apply to first?

This process will be introduced in phases.

In the first phase, it will apply to shares in the cash segment where derivatives contracts are available. In other words, the exchange is beginning with stocks that are already part of the derivatives universe.

This does not mean that every listed share will immediately come under the Closing Auction Session.

How will the reference price be decided?

Before the auction process can begin, the exchange needs a starting reference price. This reference price is important because the allowable band during CAS will be calculated around it.

If there are trades between 3:00 PM and 3:15 PM

The reference price will be based on the VWAP of those trades.

VWAP means Volume Weighted Average Price. In very simple words, it is an average price where bigger quantity trades get more weight than smaller trades.

If there are no trades in that period

The exchange may use the last traded price of the day.

If there is no trade in the security during the day, then the previous closing price may be considered, subject to adjustment where required.

Example: if a share has a VWAP of Rs 1,000 between 3:00 PM and 3:15 PM, then Rs 1,000 becomes the reference point for the Closing Auction Session.

What is the price range allowed during CAS?

During the Closing Auction Session in the equity segment, the permissible range will be plus or minus 3% from the reference price.

Illustration
If the reference price is Rs 100

Orders during CAS can generally fall within a range of about Rs 97 to Rs 103.

Why this exists
The purpose is to control extreme movement

This defined range helps the exchange discover a closing price in an orderly manner instead of allowing unreasonable price jumps.

Which orders are allowed during CAS?

Not every order type can be placed during the Closing Auction Session.

Allowed order types

  • Limit Orders
  • Market Orders

These orders can participate in the auction process used to discover the closing price.

Order types not allowed

  • Iceberg Orders
  • Revealed Quantity Orders
  • Stop Loss Orders
Clients should be careful while placing orders near market close and should not assume that every order type will be accepted during this session.

How will the final closing price be determined?

For shares where CAS is applicable, the exchange will determine the official closing price based on the equilibrium price discovered during the Closing Auction Session.

If an equilibrium price is discovered

That equilibrium price becomes the official closing price for the day.

If no equilibrium price is discovered

The exchange will use the fallback reference mechanism to determine the closing price.

In simple language, the exchange now has a structured method for finding the closing price even if the auction does not produce a matched result.

What kind of information may be visible during CAS?

During the auction process, the exchange may show indicative information to improve market transparency.

  • Indicative equilibrium price
  • Indicative tradable quantity
  • Total buy quantity and sell quantity
  • Imbalance quantity
  • Whether the imbalance is on the buy side or sell side

This gives market participants a better idea of how the closing price is shaping up.

What should clients keep in mind?

The closing price may work differently now

For applicable shares, the final close may now be discovered through an auction-style process rather than depending only on the last trade.

Be careful near market close

Since special rules and price band limits apply, it is wise to review your price and order type properly before placing any order near closing.

Only certain order types are accepted

Some advanced or conditional orders are not permitted during the Closing Auction Session.

This is intended to improve fairness

The aim of the process is to make the closing price more transparent, more balanced and less dependent on isolated trades.

Main takeaway: for certain stocks, the final closing price will now be determined through a formal exchange process designed to better reflect real buy and sell interest.

Frequently Asked Questions

What is CAS in very simple language?
CAS is a short exchange process near market close that helps decide the final closing price of certain shares in a more balanced and transparent way.
Will this apply to all shares immediately?
No. It will be introduced in phases. Initially, it applies to shares in the cash segment where derivatives contracts are available.
How is the starting reference price decided?
It is generally based on the VWAP of trades between 3:00 PM and 3:15 PM. If there are no trades in that period, the exchange may use the last traded price or other fallback rules.
What is the permitted price range during CAS?
The allowable band is generally plus or minus 3 percent from the reference price for applicable securities in the equity segment.
Can I place all order types during CAS?
No. Limit orders and market orders are allowed. Some order types such as iceberg orders, revealed quantity orders and stop loss orders are not allowed during this session.
How is the official closing price finally determined?
If the exchange discovers an equilibrium price during the auction, that becomes the official closing price. If not, the exchange uses a fallback mechanism.
Why has this system been introduced?
The main purpose is to make the closing price more orderly, more transparent and more representative of genuine market demand and supply.

Important Note for Clients

This is an exchange-level market structure update. Clients are advised to remain mindful while placing orders close to market closing, especially in stocks where the Closing Auction Session becomes applicable.

This article is intended for client awareness and simplified understanding. Please refer to official exchange communication for the complete operational and regulatory framework.
Comment (0) Hits: 213
Blog
Hits: 930

Day before yesterday, our dealing desk at ProStocks received a call from a concerned client.

His NIFTY options trade had been executed — but shortly after, the terminal displayed:

Trade CXL: Trade Cancelled by Exchange

The contract involved was NIFTY 10 March 2026 – 26,600 PUT.

Naturally, the first question was:

“Why would NSE cancel a properly executed trade?”

This Was Not a Broker Cancellation

When something like this happens, clarity is important.

The broker does not cancel such trades.

The cancellation is done automatically at the exchange level under NSE’s surveillance mechanism known as the Reversal Trade Cancellation Mechanism (RTCM).

RTCM was introduced through NSE Circular No. NSE/SURV/65645 dated December 17, 2024.

The official circular can be accessed here: NSE – Reversal Trade Cancellation Mechanism Circular

What RTCM Actually Monitors

NSE tracks intraday trades between pairs of counterparties (identified via PAN or CP codes).

If two parties buy and sell the same contract between themselves in a reversal pattern — especially where quantities and price differences cross certain thresholds — the exchange system may cancel the trade automatically.

The evaluation considers multiple factors together, including:

  • Reversal quantity compared to total market volume
  • Buy vs sell ratio between the same two entities
  • Price impact on square-off
  • Concentration of volume between the same counterparties

Only when all conditions are triggered does cancellation occur.

Why Deep OTM Strikes Can Trigger It

The strike in question was significantly out-of-the-money.

Deep OTM index options generally have:

  • Lower traded quantity
  • Wider spreads
  • Fewer active participants

In such situations, even moderate trading between the same counterparties can represent a large portion of total market volume.

That structural reality increases the probability of triggering RTCM.

Does This Imply Manipulation?

Not automatically.

Surveillance mechanisms are designed conservatively to protect market integrity.

Sometimes legitimate trades in illiquid contracts may resemble reversal patterns from an algorithmic perspective.

The key takeaway is not about intent — it is about structure.

The Larger Lesson

At ProStocks, which I run along with my father, we see how market structure continues to evolve.

Trading today is not only about direction or strategy.

It is also about:

  • Liquidity awareness
  • Execution structure
  • Counterparty dynamics

Understanding surveillance frameworks is now part of being a serious derivatives participant.

Reference:
NSE Circular – Reversal Trade Cancellation Mechanism (RTCM) in Equity Derivatives Segment Circular No. NSE/SURV/65645 dated December 17, 2024.
By Aditya Toshniwal
Comment (0) Hits: 930
Blog
Hits: 1004

If you are a Non-Resident Indian (NRI) living in France and investing in Indian listed shares, it is important to understand how capital gains tax and dividend taxation work under the India–France Double Taxation Avoidance Agreement (DTAA).

India has the primary right to tax capital gains arising from Indian resident companies. France taxes its residents on worldwide income at 30% (PFU) and generally allows Foreign Tax Credit (FTC) for tax paid in India.

Capital Gains Tax for France Resident NRIs

Under the amended India–France DTAA, India has clear taxing rights on capital gains arising from sale of shares of Indian companies. Therefore, an NRI resident in France must first pay tax in India as per Indian Income Tax laws.

Type of Gain (Listed Shares, STT Paid) Indian Tax Rate
Short-Term Capital Gains (≤ 12 months) 20% + surcharge + 4% cess
Long-Term Capital Gains (> 12 months) 12.5% + surcharge + 4% cess

France applies a flat 30% tax (Prélèvement Forfaitaire Unique – PFU) on capital gains. However, tax paid in India is generally allowed as a Foreign Tax Credit in France. If French tax exceeds Indian tax, the difference is payable in France.

Dividend Taxation for France Resident NRIs

Dividend income received from Indian companies is taxable in India under domestic law. France also taxes dividend income at 30% (PFU).

Foreign Tax Credit is generally available in France for Indian tax paid on dividends. Proper submission of a valid Tax Residency Certificate (TRC) helps ensure treaty benefits are applied correctly.

How Double Taxation is Avoided

The India–France DTAA prevents double taxation through the Foreign Tax Credit mechanism. This means:

  • India taxes capital gains and dividends first.
  • France taxes the same income at 30%.
  • Tax paid in India is credited in France.
  • Only the balance (if any) is payable in France.

Conclusion

For NRIs residing in France, investments in Indian shares are taxable in both jurisdictions. However, due to the India–France DTAA, double taxation is generally avoided through Foreign Tax Credit. In most cases, the overall effective tax aligns closer to France’s 30% rate.

Tags:
Comment (1) Hits: 1004

Page 1 of 10

Latest Articles

16 September 2025
13 September 2021
26 December 2019

Need Help?

Mumbai Office:
B-50, Pravasi Estate, Goregaon (East), Mumbai - 400063

Call us on +91 22 62 43 43 43 / +91 22 46 60 77 77

Email: [email protected]

Sunlight Broking LLP
Registered Office:
327, Govindam Tower, Old RTO Road, 3rd Floor, Gandhi Nagar, Bhilwara, Rajasthan, India 311001

Registration Numbers:
SEBI Regn. No.: INZ000048660 INDP2802016 | BSE Member code: 6635 | NSE Member code: 90084 | CDSL DP ID: 12083200 | AMFI Registration No (ARN): 119535

Attention Investors

Prevent unauthorized transactions in your demat account. Update your mobile number with your depository participant. Receive alerts on your registered mobile number for debit and other important transactions in your demat account directly from CDSL on the same day.
Prevent unauthorized transactions in your trading account. Update your mobile numbers/email address with your stock brokers. Receive information of your transactions directly from the Exchange on your mobile/email at the end of the day. This is issued in the interest of investors.
Client Registration Documents in Vernacular Languages can be download from here.
Facility of Clearing Corporation for verification of Client Collaterals , please register on this link
Investment in stock market are subject to market risk.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.
KRA-KYC is one time exercise while dealing in securities markets - once KRA-KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund, etc...), you need not undergo the same process again when you approach another intermediary. As a business we don't give stock tips, and have not authorized anyone to trade on behalf of others. If you find anyone claiming to be part of Sunlight Broking LLP and offering such services, please send us an email to [email protected]

Procedure to file a complaint on SEBI SCORES: Register on SCORE portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances

Investor Grievance: NSE | BSE | SCORE | SMARTODR | CDSL | [email protected]

Privacy Policy | Disclaimer | Management Policy and Procedure | Investor Charter | Risk Disclosures on Derivatives | KMP Details | Procedure for Filling of Complaint | CKYC | Voluntary Freezing | NATIONAL FINANCIAL LITERACY QUIZ (NFLQ)

© , ProStocks

ProStocks, A Sunlight Broking LLP Venture