'For traders who can code...': Zerodha cuts rates as Nithin Kamath explains NSE’s new rulebook

The National Stock Exchange (NSE) has finally issued its long-awaited circular on retail algorithmic trading. The new rules outline how individual coders, algo vendors, and brokers can participate in the algo ecosystem, without compromising on security or compliance.

Zerodha co-founder Nithin Kamath, whose brokerage has long supported DIY trading tools, called the development a big step forward. “NSE's new retail algo trading circular is finally out,” Kamath wrote on X. “For individual traders who code: You can now automate strategies up to 10 orders/second with just a static IP for your API key—no registration needed!”

That threshold—10 orders per second (OPS)—is now the dividing line. Anyone building their own strategy can go live without formal registration as long as they stay under it. Go beyond, and you’ll need to register with the exchange and obtain a unique algo ID.

Kamath also outlined the shift in requirements for commercial algo vendors: “You'll need to register with exchanges to partner with brokers, but once registered, your users won't need individual static IPs. All strategies need exchange registration regardless of order frequency.”

For brokers like Zerodha, the new rules offer room to innovate. “We can offer pre-approved algos directly on our platforms,” Kamath noted, “providing more user-friendly automation options.” This means traders who may not know how to code can still access advanced, compliant algorithmic strategies from broker platforms.

To mark the regulatory clarity, Zerodha announced a price revision on its API suite. “We have offered APIs for retail users and startups on kite.trade for ₹2,000/month. With this new clarity, the regulatory risk is greatly reduced, so we’re bringing the price down to ₹500/month for the data (real-time + historical) APIs.” Kamath also confirmed that “the order placement and account management APIs have been made free since March 2025.”

The NSE's framework includes tight security mandates—2FA, no open APIs, and all systems hosted securely. Brokers remain liable for all orders, and any rogue strategy can be disabled by the exchange. Still, the flexibility is a boost for innovation.

In Kamath’s words, the new circular represents “clarity, reduced risk, and new possibilities for retail algo traders.”