- This topic has 1 reply, 2 voices, and was last updated 1 year, 2 months ago by
.
-
Posts
-
-
RHey guys,
I’m building a platform for algo trading specifically tailored for stock market traders and investors in India. The core idea is to help traders automate their existing strategies to eliminate emotional/manual intervention and maintain discipline.
Here’s what my platform does:
A trader shares their manual setup or strategy with me.
I help them build their own custom algo trading software based on that strategy.
It executes trades automatically using their broker API (like Angel One, Upstox, etc.).
If someone doesn’t have a strategy, I can offer popular or backtested ones to start with.
My goal is to remove manual errors, missed opportunities, and emotional decision-making from their trading.
A few important points:
I’m not offering financial advice or tips.
I do not promise profits or take any profit-sharing fees.
My role is strictly as a developer/tech service provider.
Users trade through their own broker APIs and accounts.
I plan to include clear disclaimers stating I am not a SEBI-registered advisor.
I charge only for development and setup, not on profits or performance.
My Question:
What are the legal considerations I should keep in mind while offering such a service in India?I know I’ll need:
Strong disclaimers
Clear terms and conditions
To avoid giving financial advice
Ensure full transparency about risk
But is there anything else I’m missing from a legal standpoint? Would this setup still require any registration or compliance under SEBI or other laws, even though I’m just building tools?
Appreciate any insights from those who’ve built something similar or have legal experience in this space 🙏
-
SYou’re already thinking along the right lines by focusing on disclaimers, transparency, and avoiding any advisory role. Under current SEBI regulations, as long as you’re not providing investment advice, managing portfolios, or executing trades on behalf of users, you’re technically operating outside the purview of registration. However, algorithmic trading—especially when facilitated through third-party platforms—falls under increasing scrutiny, and SEBI has issued guidelines regarding the use of APIs and third-party algo providers. It’s advisable to include a clause stating that users are solely responsible for their trading decisions and execution. Still, I’d strongly recommend consulting with legal professionals like Themis Partner or similar firms who specialize in fintech compliance in India. They can help tailor your terms of service and ensure you’re not unintentionally stepping into a regulated activity, especially as SEBI evolves its stance on algo-trading tools and vendor oversight.
-
