The SEBI circular on API usage and algo trading is out. What you need to know:

If you’re a retail trader using broker APIs to automate trades, you can do so as long as your order frequency is below an exchange-prescribed threshold. This limit is yet to be decided.

If you’re selling algos or strategies to other traders, you’ll need to partner with a broker and get yourself registered with the exchanges to do so.

Marketplaces where people share algos for a fee can’t publish strategies without exchange registration as well as an RA license.

The exchanges will publish their own circulars with operational details by April 1.

Link to the full post explaining this here.

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