The Securities and Exchange Board of India (SEBI) is the official governing body of the financial market. Its mission is to ensure that trading is safe, fair and clear for all — from small traders at the corner store to large institutions.
Now, SEBI has announced an important update.
From the 1st of October, 2025 the majority of algorithms (algo) trading platforms have to make use of an permanent IP address -that is a fixed Internet address that does not change.
Let’s discuss the meaning behind this and why it is important to you.
Why This Rule Matters
For retailers Extra protection against unsafe or unwise algo practices.
Brokers More obligation for security as well as conformity.
for algo-related vendors A call to upgrade your tools and ensure they meet SEBI’s safety requirements.
Shortly: SEBI wants to keep the trading of algorithms secure, clean and transparent.
Why SEBI Issued This Circular
SEBI has witnessed some alarming developments:
Algos that are not authorized to be used without permission.
Risk management is not well-organized One small oversight could result in massive losses.
The flood of auto-orders disrupts the market.
The solution? A set of rules that will ensure that all that the algorithms are properly registered and tracked. They are also monitored.
Who Will Be Affected?
Retail trader If you’re using an algorithm (yours or another’s) it is your responsibility to adhere to the guidelines.
The Algo vendor Strategies must be evaluated and registered with brokers.
Brokers responsible for supervising and approving all algorithms.
What is a Static IP?
A static IP is basically an address on the internet that you can use to your system of trading.
Think of it as your permanent address for your home instead of having to move houses every day.
Your primary IP is your primary address.
Second IP = A backup in the event that the primary one is not successful.
Beginning October 1, SEBI wants all API transactions to be made only through the approved IP addresses.
Algo Registration & Approval
Here’s how it works:
Algo sellers must present their strategies to brokers. Brokers must check and register with SEBI.
Wholesale traders who create their own algos have to do exactly the identical.
Each strategy that is approved gets an distinctive Algo ID for simple tracking.
What Traders Should Do Right Now
Create the static IP contact your broker and establish your main (and back up) IP.
Verify your provider Check that your provider of algos has been approved by SEBI and is registered with the algo ID.
If you create your own document, make sure you test it and obtain approval by October.
How to Get a Static IP
Option 1: Through Your Internet Provider
Request an IP static through Airtel, Jio, ACT or BSNL.
It may be necessary to have a business plan or pay a small additional cost.
Cost: Rs200 – Rs2,000/month.
Option 2: Cloud Hosting / VPS (Best for Bots)
Platforms such as AWS, Google Cloud, Azure, DigitalOcean, Hosting Raja let you easily reserve static IP addresses.
The bot is operational all hours of the day (your bot doesn’t rely on your home internet).
Rapid and reliable set-up.
Option 3: Dedicated Server in a Data Center
High-frequency or professional traders.
Providers: Netmagic, CtrlS, Tata Communications.
Cost: Rs5,000 – Rs20,000/month.
Final Thoughts
Sebi’s rule on static IP isn’t solely about compliance; it’s about safeguarding your capital and making sure that the market is fair.
It’s true that it’s very technical initially. But, what if:
Register your IP
Verify your algo vendor
Test your strategies
…you’ll be prepared to make the easy transition prior to the deadline in October.
Welcome to TradeHull – Build Your Trading Ideas With Us
We are TradeHull We at TradeHull make trading with algos easy and easy to access.
Every static IP configuration is compatible when using our software.
Whether you’re an experienced or novice trader, we can help you to develop, test and tweak strategies.
Make your dream come to life by working with us TradeHull.com
Let’s create the future of trading with each other.
