Hello API & Algo Traders,
Over the last few months, there has been a lot of discussion around the new regulatory framework for retail algorithmic trading in India. The intent from regulators and exchanges has been very clear: enable innovation and participation in algo trading, while ensuring the ecosystem remains safe, transparent, and fair for all market participants. We have been discussing these too with all of our users on this community & across channels.
At Dhan, we have been actively working behind the scenes to ensure our systems, APIs, and infrastructure are aligned with the upcoming regulatory requirements. As we discussed the same on all the possible changes back in September (Guidelines on Algorithmic Trading for Retail Traders), we are now close to the final implementation stage for them. Most of these changes will happen seamlessly for you, but there are a few important updates that you should be aware of to remain compliant and continue trading smoothly.
Below are the key changes that will be implemented soon as part of the upcoming deadline of 31st March, 2026:
1. Market Price Protection (MPP) on APIs
Implementation Date: 21st March
Market orders will no longer be allowed through APIs as per the regulatory framework.
Going forward, whenever a market order is sent through APIs, it will automatically be converted into a limit order with Market Price Protection (MPP) applied. The limit price will be calculated within a predefined MPP range. Since market orders will now convert to limit orders, it is important that your strategy or system checks the order execution status at your end.
2. Updated Rate Limits for Orders API
Implementation Date: 21st March
As part of the regulatory framework, the maximum order rate limit has been revised. The rate limit for placing orders through APIs will change to 10 orders per second.
Earlier, the limit was 25 orders per second. If you are running high-frequency strategies or batch order placements, you should review your strategy logic and ensure it remains within the updated rate limits.
3. Static IP Whitelisting
Implementation Date: 1st April
To improve accountability and security in algorithmic trading, Static IP registration will now be mandatory for API trading. All API orders must originate from registered static IP addresses.
You need to register your static IP address on the Dhan (web.dhan.co or DhanHQ API). If you are using third-party algo tools or platforms, make sure they are using a static IP that is registered for your account
From the date of implementation of this new framework, orders originating from unregistered IP addresses will not be accepted.This is an important step towards creating a safer and more accountable algo trading ecosystem. You must have already started receiving alerts from Dhan, if you have not yet configured static IP or using different IP then the one registered.
The objective behind these changes is to prevent unintended trades, reduce operational risks, bring more transparency to algorithmic trading & scale retail participation in algos
At Dhan, we have ensured that all required infrastructure and platform changes are already in place so that you can continue building and running your strategies smoothly. All you need to do is make the few adjustments mentioned above to stay compliant and keep trading without interruptions.
If you have any questions or need help implementing these changes, feel free to ask in this thread or reach out to our support team at apihelp@dhan.co.
The future of retail algo trading in India is just getting started. And we are here to ensure your setups are compliant and ready for all possibilities in the market.