A comprehensive overview of NSE’s circular on the new retail algo trading framework
NSE just published their circular on retail algo trading specifications. It creates a clean, secure framework for brokers to offer APIs and automation tools to retail traders. The circular addresses the needs of individual traders automating strategies, algo vendors selling to retail users, and brokers offering platform-based automation.
Key Points for Each Stakeholder
Individual Automation
Individuals can automate strategies up to 10 orders per second (per segment per exchange) without registration. They’ll only need a static IP dedicated to their API key. For anything over 10 orders per second, algos will need exchange registration. The exact process will be revealed by the exchanges soon, likely similar to the existing institutional algo approval process.
Algo Providers
Algo providers must register with exchanges to partner with brokers. Vendors need their own static IP to connect to brokers, eliminating the need for individual users to have static IPs. All strategies offered by vendors require exchange registration regardless of order frequency. Brokers remain responsible for all partnered platforms.
Broker-Provided Algos
Brokers can directly offer algos/automation tools on their platforms. All such strategies require exchange approval regardless of order frequency.
Specifications Comparison
This table summarizes the key requirements for each type of algo:
| Aspect | Broker-Generated Algos | Algo Provider Algos | Client-Generated Algos |
| Definition | Algorithms created and offered by brokers to clients, registered with exchanges. | Algorithms developed by empanelled third-party providers, registered with exchanges, and offered via brokers. | Algorithms created by clients (or through third parties), used via broker’s trading systems. |
| Registration Requirement | Must be registered with exchanges; assigned unique algo IDs. | Must be registered with exchanges; assigned unique algo IDs usable across brokers. | Unregistered if ≤10 orders/sec (OPS); registered with unique algo ID if >10 OPS. |
| Static IP Requirement | Static IP can be broker’s or client’s for API access. | Static IP can be vendor’s or client’s for API access. | Static IP mandatory (client’s or vendor’s if via empanelled provider); mapped to API keys. |
| Order Threshold (OPS) | No specific OPS limit mentioned; subject to broker’s risk management. | No specific OPS limit mentioned; subject to broker’s risk management. | Capped at 10 OPS for unregistered algos; exceeding requires registration. |
| Algo ID Tagging | Orders tagged with exchange-specific algo ID. | Orders tagged with exchange-assigned unique algo ID. | Orders tagged with generic ID (unregistered, ≤10 OPS) or unique ID (registered, >10 OPS). |
| Change Management | Brokers report algo logic changes to exchanges for approval updates. | Providers report changes via brokers; exchanges update registrations. | Clients report changes to brokers, who notify exchanges for registration updates. |
| Broker’s Role | Create, register, and offer algos; provide algo details to clients; ensure compliance. | Facilitate integration with provider’s platform; conduct due diligence; notify exchanges of arrangements. | Provide API access; monitor OPS limits; forward registration details to exchanges; ensure compliance. |
| Provider Involvement | None; brokers develop algos independently. | Empanelled providers develop algos; brokers may have commercial/technical arrangements. | Optional; clients may use third-party developers (treated as client algos). |
| Security Requirements | OAuth/2FA, password expiry, no open APIs; hosted on broker’s cloud servers. | OAuth/2FA, password expiry, no open APIs; hosted on broker’s cloud servers. | OAuth/2FA, password expiry, no open APIs; hosted on broker’s cloud servers. |
| Risk Management | Brokers ensure RMS checks, compliance with IBT/STWT, and algo trading guidelines. | Brokers ensure RMS checks, compliance with IBT/STWT, and algo trading guidelines. | Brokers ensure RMS checks for unregistered algos (≤10 OPS) and compliance with IBT/STWT guidelines. |
| Broker Liability | Fully liable for all orders; exchanges can terminate rogue algos. | Fully liable for all orders; exchanges can terminate rogue algos. | Fully liable for all orders; exchanges can terminate rogue algos. |
| Exchange Oversight | Exchanges assign algo IDs, approve changes, and can terminate rogue algos. | Exchanges empanel providers, assign algo IDs, and can terminate rogue algos. | Exchanges assign algo IDs (generic or unique), approve registrations, and can terminate rogue algos. |
P.S.: Zerodha has offered APIs for retail users and startups on kite.trade for INR 2000 per month. With this new regulatory clarity, the regulatory risk in offering the product is greatly reduced, and so we’re bringing the price down to INR 500 per month for the data (realtime + historical) APIs starting May 6, 2025. The order placement and account management APIs (view holdings, positions, etc.,) have been made free since March of 2025. The 500 rupee fee for the data APIs is to ensure only users with serious intent signup for using the APIs since streaming data comes with a significant bandwidth cost for us.
To know more, check out our API documentation. For any questions on how to use the APIs, create a post on the Kite Connect developer forum.
I run my algo in my local system, will local host IP (127.0.0.1) work as static IP, or its mandatory to shift to cloud.
Does Algo Provider Algos need exchange registration if they keep a limit equal orless than 10 of orders per second in-built of its users ?
And the limit of 10 orders are for every API keys or entire client account?
Like I\’ve said in the post above, algo providers will need registration irrespective of order rate. The limits are per API key, however the circular clearly states that only one API key per user can run an unregistered algo below 10 OPS, so multiple API keys won\’t automatically allow you to bypass these limitations.
What is the timeline where the static ip is mandatory? Is it effective immediately?
This question is for orders less than 10 per second. There was also another rate limit on 3000 orders per day, Are there any revisions here.
The 3000 orders per day is a limit we\’ve put in place considering very few people even hit that limit. Static IP requirements will kick in from August 1.
Hi Sharath,
SEBI has asked for implementation of this before August 1st.
The daily rate limit of 3000 is an internal one at Zerodha built to keep frivolous orders away. This is extended to higher limits for users who place genuine orders.
Client writes the strategy logic. We are software business. We write python code to automate the strategies. Do we need to register with the exchange?
If you\’re just a coder-for-hire, you do not need any registrations.
Hi,
I just need to understand the following.
1) If I run my algo on my laptop and only use the API for placing orders (<10 Orders per sec), the only thing that I now require is a static IPv4/IPv6 address right?
2) Also, in case multiple family members use same internet connection, can we map the static IP to each account's API key?
Thank you.
Yes and yes. 🙂
I have langchain argent for order execution how to connect or is there any compliance for MCP server
As per the article, the algorithm has to be hosted on the broker\’s cloud server for all 3 categories. Does Zerodha offer server space to deploy the algos?
That bit will be revised out of the circular, Abhay.
If looking to set up a cloud instance with static IP, nearer to your servers, which service would you suggest…
AWS Mumbai
Hello Zerodha Team,
My Kite connect subscription got renewed on May 2nd 2025 and the amount charged is 2000/-
with this new offer rolled out, which is 500/- per month, how does this translate in terms of subscription fee for this Month which is My 2025 and later.
does that mean, the Rs.2000/- which i\’ve already paid will be adjusted for the subsequent 3 months (June, July & August 2025).
request you to provide clarification in this regard.
Thanks in advance.
Hey Rajasekhar older subscriptions will remain unchanged. It becomes difficult to do downward price revisions if we also have to apply them retroactively.
Instead of using INR use the rupee symbol.
Individual automation: If the dedicated static IP network connection is down, what would you advise client\’s do? Is declaring more than one static IPs the only way out?
Yes, you\’ll need to have a backup. Of course, you can always access your account on our apps (Kite web and mobile) to manage your trades in case of an emergency.
Hello Team Zerodha, that\’s good news, thank you. My problem is, I have created a new app in the afternoon after the announcement but was charged 2k, can you extend the subscription to further months so in this case?
Hi KK,
You can reach out to our team and they will add additional credits to compensate.
Thanks.
Can you please clear following two points:
1. What do changes include for client algos (<10 OPM) that need to be updated with exchanges?
2. What does "hosted on broker's cloud servers" mean? Are clients supposed to host their full algo stack on your servers?
Regards.
1. You\’ll need a static IP. Nothing else changes.
2. This will be revised out of the circular.
Thanks Nikhil,
I just renewed last week for 1 month at Rs. 2000 ;-(
If not extending, give us some credits on brokerage
Hey Nishant. The fees have always been non-refundable. It becomes veryy difficult to do any downward revision of pricing if we\’re to then refund all older payments. 🙂