Trading via API: What Every Client Needs to Know

: Blog; 04 April 2026; Hits: 31

Trading via API: What Every Client Needs to Know

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.