The Securities and Exchange Board of India (SEBI) has introduced a critical compliance requirement for all users of algo trading APIs: the mandatory use of a Static IP address.

This move is part of a broader framework to enhance transparency, accountability, and security in the Indian financial markets. It affects everyone from retail traders using simple Python scripts to institutional desks.

What is a Static IP?

Most home internet connections use a Dynamic IP, which changes every time you restart your router. A Static IP is a fixed digital address that never changes.

SEBI's mandate ensures that every order placed via an API can be traced back to a specific, authorized machine. This prevents unauthorized access and "black box" trading from unknown sources.

Why the Change?

• Security: By whitelisting specific IPs, brokers can block any malicious attempts to access your trading account from other locations.
• Accountability: It ensures that the person or system placing the trade is exactly who they claim to be.
• Audit Trail: In case of market manipulation or anomalies, regulators can pinpoint the exact origin of the trades.

How to Comply

If you are an algorithmic trader, you have two primary options:

1. Request a Static IP from your ISP

Contact your internet service provider (Jio, Airtel, ACT, etc.). Most offer a Static IP add-on for a small monthly fee (typically ₹200-₹500). Note that this usually requires a business broadband plan.

2. Use a Virtual Private Server (VPS)

This is the preferred route for serious traders. A VPS (like AWS, DigitalOcean, or specialized trading VPS providers) comes with a static IP by default.

Bonus: A VPS also offers lower latency and 24/7 uptime, ensuring your algos run uninterrupted even if your home electricity fails.

The Deadline

Brokers are already enforcing this rule. If you haven't bound a static IP to your API keys yet, your access may be revoked. Log in to your broker's developer console (Zerodha, Dhan, Angel One, etc.) and update your "Trusted IPs" list immediately.