No, you do not need SEBI Investment Adviser (IA) or Research Analyst (RA) registration or the mandatory exchange algo framework under current 2026 regulations, provided you adhere strictly to your described operating parameters.
Because your tool operates strictly as a "White Box" infrastructure platform where users build, control, and fully understand the logic, it functions as a software utility rather than a regulated advisory service.
Why You Do Not Need Registration
1. Exempt from SEBI RA / IA Regulations
SEBI regulations govern the communication of actionable buy/sell recommendations to clients. Your platform is classified as a pure technology utility because:
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No Subjective Opinion: You do not recommend specific stocks, sectors, or entry points.
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User-Driven Actions: The user consciously selects the indicators, adjusts the mathematical parameters, and triggers the logic.
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Fully Disclosed Logic: Open-logic ("White Box") systems do not hide the underlying strategy parameters. SEBI's RA mandate primarily targets opaque "Black Box" or ready-made strategy providers.
2. Exempt from the 2026 Algorithmic Trading Framework
SEBI's retail algo-trading framework (which took full effect on April 1, 2026) introduces strict rules for automated orders, including unique exchange-issued Strategy IDs, whitelisted static IPs, and mandatory broker hosting. Your app is excluded because:
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Zero Execution Capability: You do not process, route, or execute any transactional commands.
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Information-Only Output: A private Telegram alert is legally classified as an informational notification, not an algorithmic order stream.
Critical Operational "Red Lines" to Avoid
To remain exempt, your platform must never cross into regulated territory. Ensure you maintain these strict operational limits:
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No Pre-Packaged Strategies: Do not offer default configurations with titles like "Our Best Scalping Settings" or "Premium Intraday Strategy." Every setup must require manual input or choice by the user. [
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No Shared Public Channels: Telegram alerts must exclusively go to a private, 1-on-1 chat with the specific user who configured that indicator. Sending the same alert to a group channel constitutes public research distribution.
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No Direct Broker Integration (Webhooks): Do not add buttons or features (like webhooks) that allow users to automatically forward that Telegram alert to a broker's API to execute a trade. Once your system connects directly to execution software, it triggers exchange empanelment and broker infrastructure compliance.
Mandatory & Recommended Disclaimers
To protect your business from legal liabilities or misinterpretation by regulators, display these disclaimers prominently during user onboarding and on the charting interface.
1. Technical & Software Utility Disclaimer (Mandatory)
"This web application is a pure software utility and charting tool designed for educational, informational, and backtesting purposes only. It does not provide, disseminate, or constitute financial, investment, or trading advice. The platform does not generate independent buy/sell signals, market recommendations, or financial research."
2. User Responsibility & Customization Disclaimer
"All chart layouts, indicator combinations, and mathematical parameters are entirely custom-configured by the user. Any notification or alert generated on Telegram is a direct response to user-defined logic and thresholds. The user assumes full responsibility for configuring these rules and interpreting the mathematical results."
3. No-Execution & Third-Party Broker Disclaimer
"This platform is completely decoupled from any exchange or trading mechanism. We do not execute orders, hold user funds, or interface with broker APIs for automated trading. Any trading decisions or actions taken by the user based on notifications are executed independently within their third-party broker application at their own risk."
4. Hypothetical Backtesting Disclaimer
"Historical performance or backtesting results displayed on this platform are completely hypothetical, mathematically simulated, and based on historical data. Past performance does not guarantee or indicate future market results. Simulated trading involves inherent limitations and does not account for financial risks, execution lag, slippage, or market liquidity."
the above answer is given by AI
It appears you do not require SEBI registration as applicable for IA/RA
However since your query pertains to regulatory compliance it is always advisable to personally consult an advocate who specialises in SEBI regulations and compliance