Following the recent SEBI circular on algorithmic trading and order execution controls, I wanted to seek clarification regarding the usage of Kite APIs for offsite order execution.
Our understanding is:
- SEBI’s intent is to regulate fully automated / algorithmic execution systems, especially those operating without user intervention. - Platforms like ours operate as a tech interface / execution layer, where: - No automated decision-making or algo execution is involved - The end user explicitly initiates each order - APIs are used purely as a communication bridge (UI → broker)
Given this, we wanted to clarify:
1. Is offsite order execution via Kite APIs still permitted in cases where: - The user manually confirms every trade? - No server-side automation or strategy execution is happening?
2. Are there any new restrictions or compliance requirements applicable to such platforms?
3. Would this usage fall under “algo trading” as per the new circular, or be treated as a standard execution interface?
4. Are there any upcoming changes to Kite API access or policies that we should plan for?
This clarification would help us align our platform architecture with regulatory expectations while ensuring uninterrupted service for users.
Yes, in the case of Kite Publisher, orders are placed in the Kite UI only after explicit client confirmation. Hence, orders from the publisher should function as expected.
No additional compliance requirements apply for this setup.
No, this will not be classified as algorithmic trading.
Any updates related to APIs will be communicated via the forum.
