🚨 Important update for algo traders & brokers!

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NSE has issued a significant circular dated May 5, 2025, to enhance the safety of retail investors participating in Algo trading. Here are the key highlights:

  • API Access Now Needs a Static IP
    To use algos, you must provide your broker with a static IP. This keeps your trading setup secure and traceable. You can register one primary and one backup IP. And, you can change your IP once per week, unless there’s a serious issue.

  • Low-Frequency Algos = No Registration Needed
    If your algo places under 10 orders per second, it’s considered “low-frequency.” You won’t need to register it with NSE but brokers will still apply risk checks and tag your orders with a general Algo ID.

  • High-Frequency Algos Must Be Registered
    If your algorithm is firing off more than 10 orders per second, it officially enters the high-frequency trading zone. To operate at this speed, you’ll now need to have your algo formally registered with the NSE. Once approved, your algo will be assigned a distinct identification number (Algo ID), enabling the exchange to keep tabs on it in real time. Any change in logic later? You’ll need to re-register.

  • You Can Use Broker-Provided or Third-Party Algos
    If developing your own trading algorithm isn’t your thing, that’s totally fine. Many brokers already offer plug-and-play algos that are pre-approved and compliant with the new rules. You can also explore options from third-party algo providers vetted by the Exchange. In both cases, compliance and registration are handled for you.

  • 10 Orders/Second = Hard Speed Limit
    Cross it without registration (still requires generic algo ID) and your broker must reject excess orders. This limit is crucial to avoid market disruption.

  • Security First
    Expect 2FA, API key-user-IP binding, audit logs, and daily forced logouts. Brokers must log all activity for 5 years for NSE-approved specific algos.

  • Family Accounts Can Share IPs (If approved)
    If you and your spouse or family members trade from the same home setup, you can request shared IP use. But to do this, you must submit a formal request to your
    broker and get it approved.

  • Bad Algos? NSE Can Shut Them Down
    Misbehaving algos can and will be terminated by the exchange instantly to preserve market integrity.

What does this mean for you?
Algo trading isn’t being restricted, it’s just getting safer. These changes bring retail algo access closer to institutional-grade security, while still keeping things accessible.

You can read the full NSE circular here: https://nsearchives.nseindia.com/content/circulars/INVG67858.pdf

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Is static IP for API access mandatory? Also, when will this be enforced?

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Any updates on the question above?

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Hi @Amit_Kumar_Sharma

Yes, its gonna be mandatory. Implementation deadline is set by SEBI for August 1st

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I am understanding that Broker/Exchange can restrict the order placement if Static IP and other requirements doesn’t fulfill. However, Historical data and other API features will remain intact and usable. Please confirm.

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Hello Upstox Team,

Just want to confirm,

Does my server (AWS ec2) needs static ip (like Elastic IP address) or my home wifi needs static IP address.

If its Elastic IP then, we would need to spend more on Server Infra every month.

One more thing, can we choose IPV6 rather than IVP4 as public IP address for EC2?

Thanks.

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@Anand_Kumar wherever you are running the algo from - you’ll need a static IP. So you can run it from home if your ISP gives you that capability or you can run from AWS.

Yes - likely it will be an additional cost to get a static IP from any provider.

We’ll get back to you on the modalities (IP v4 vs v6) as we’re also getting clarity