SEBI compliance for retail algo trading rests on a few clear rules: orders go through your own broker's official API, from a static IP the broker has on record, after a daily two-factor login. This page explains SEBI's retail algo framework in plain terms, and how QuantPower, as trading software, is set up to work within it.
SEBI's retail algo framework in plain terms
SEBI's circular of 4 February 2025, on safer participation of retail investors in algorithmic trading, sets the rules. They started in phases from 1 October 2025 and have applied to every broker since 1 April 2026. Our guide to SEBI rules for option trading covers them alongside lot sizes, expiries and margins.
| Rule | What it means for you |
|---|---|
| The broker is responsible | Your broker is the principal for every algo order, and an algo provider can act only as its agent |
| No open APIs | API access needs a unique API key, a static IP registered with the broker and a two-factor login |
| Daily logout | API sessions end before the next trading day, so you log in again each morning |
| Traceable orders | The exchange tags algo orders, and a registered algo carries its own Algo ID |
| Algos offered to others | The provider must be empanelled with the exchanges and each algo registered. A provider of black-box algos, whose logic is hidden, must also be a SEBI-registered research analyst |
| Your own algos | An algo you build for your own account needs no exchange registration if it sends fewer than 10 orders a second |
| Kill switch | The exchange can switch off any algo that malfunctions or disrupts the market |
| No return claims | Brokers may not refer to past or expected returns of an algo, or work with platforms that do |
What QuantPower is, and is not
- Not a stockbroker. QuantPower does not hold money or securities and does not place orders in its own name. Every order is placed in your account by your broker.
- Not an adviser. QuantPower is not a SEBI-registered investment adviser or research analyst. It gives no tips, calls or buy and sell advice, and what you trade is your decision.
- No hidden logic. A strategy in QuantPower is your own set of rules for entries, exits, strikes, quantities and stops. You can see and change every rule.
How QuantPower fits the framework
QuantPower supports the broker-hosted or client-static-IP operating model specified for a verified connection. Confirm its applicable account, login and hosting requirements with the broker.
| What the framework asks | How it works with QuantPower |
|---|---|
| Orders through a SEBI-registered broker | Orders go through your own account at the broker whose connection has been verified for your release |
| A unique API key | You create your own API key in your broker account, and it is used for your account only |
| A registered static IP | For a client-hosted setup, register the client’s own static IP. A broker-hosted setup uses broker infrastructure and does not require the client to obtain a static IP. |
| Two-factor login and daily logout | You log in on your broker's own page each trading day, with its two-factor check, and the session ends before the next day |
| Under 10 orders a second for your own algos | Orders from your strategies stay within the limit for self-built algos: fewer than 10 a second |
| Funds with the broker | Your money and securities stay in your broker account. Broker trading APIs place orders; they do not withdraw money |
| No return claims | QuantPower does not advertise or promise returns from any strategy |
Whose static IP, and where QuantPower runs
Strategies run on broker infrastructure or the client’s own static IP setup, not Wisdom Tree Ventures servers. The required host and broker session must remain available; check your connection before relying on unattended operation.
Ready-made strategies from a provider, or your own
A ready-made strategy, written by someone else and offered to many traders, counts as the provider's algo, not yours. Under the framework it needs an empanelled provider, a broker that offers it and an Algo ID for each strategy. Check which route applies to the broker connection and your strategy:
- Visible templates. A template loads inspectable rules into the builder. Editing a template alone does not establish a regulatory classification or approval; confirm the applicable route with your broker.
- Your own rules. Strategies run on broker infrastructure or the client’s own static IP setup as applicable. Follow the rate limits, registration and operating requirements for that connection.
Controls that can stop an algo
- Your broker's risk system checks margin, quantity and price limits on every order before it reaches the exchange, and rejects orders that fail.
- The kill switch. The exchange can switch off an algo at once if it malfunctions or disrupts the market.
- Your own limits. In QuantPower you can set a stop loss on each leg and an MTM stop loss for the account, and pause a strategy at any time. A price gap or a rejected order can still make a loss larger than the limit.
- Your broker's app. Positions are held with your broker, so you can close them there if QuantPower is unavailable.
Complaints
Your broker handles complaints about algo orders placed through its systems. For questions about the software, write to info@quantpower.tech or call +91 9711130044. If your broker does not resolve a complaint, you can raise it with SEBI through the SCORES portal.
Your side of SEBI compliance
Most duties under the framework sit with brokers, but a few are yours:
- Create your API key in your own broker account and keep it private.
- For client-hosted execution, register your own static IP. For broker-hosted execution, confirm the broker’s setup instead.
- Log in on your broker's page each trading day with two-factor authentication.
- Use your strategies for your own account only. A strategy shared with or sold to others becomes an algo for others, which needs registration.
- Set a stop loss and a daily loss limit before a strategy runs live, and test new rules in paper trading first.
Algo trading does not remove market risk, and backtests do not predict future results. SEBI's study of individual traders in equity F&O found that most of them lost money.
Related guides
- Broker connection requirements: API key, static IP and daily login, broker by broker
- Security algo trading: what a broker connection can and cannot do
- Algo trading for retail traders: getting started under the new rules
- Prebuilt vs custom strategies: how ready-made and self-built strategies differ
- Disclaimer: the full risk disclosure
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Frequently asked questions
Is QuantPower SEBI-registered?
No. QuantPower is trading software, not a stockbroker, investment adviser or research analyst, and it gives no advice. Your orders are placed in your own account by your SEBI-registered broker.
Do I need a static IP to use QuantPower?
For a client-hosted setup, you need your own registered static IP. Broker-hosted execution runs on broker infrastructure and does not require the client to obtain a static IP. Confirm which setup your connection uses.
Does QuantPower give trading tips or calls?
No. QuantPower provides tools to build, test and run your own rules. It does not recommend trades, and nothing on the platform is investment advice.
Can my broker stop a QuantPower strategy?
Yes. Every order passes your broker's risk checks, and your broker rejects orders that fail them. Under SEBI's framework, the exchange can also switch off an algo that malfunctions.
Sources
- SEBI: circular on safer participation of retail investors in algorithmic trading, 4 February 2025, and glide-path circular, 30 September 2025 (sebi.gov.in) (checked 20 October 2026)
- NSE: implementation standards for retail algo trading (NSE/INVG/67858), 5 May 2025, operational modalities (NSE/INVG/69255), 22 July 2025, and FAQ on retail algo trading, 3 November 2025; BSE: implementation standards, 2025 (nseindia.com) (checked 20 October 2026)
- SEBI: circular barring brokers from referring to past or expected returns of algos, September 2022
- SEBI: study of profits and losses of individual traders in equity F&O, September 2024