SEBI regi for open code indicator app (no order, no tips) required?

Question

SEBI regi for open code indicator app (no order, no tips) required?

16-Jun-2026 (In Startup Law)

FREE web app: free charts, data, open-logic indicators (logic fully disclosed). User sets his own settings, generates his own entry/exit signals on his charts, can backtest his own strategy. On his setting's trigger we send a private alert only to his Telegram. We execute NO orders (user trades in his own broker app), give NO public buy/sell calls, make NO return promise—only show each indicator's backtest result. Does this need SEBI RA/IA registration or the algo framework? Mandatory disclaimer

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Advocate Himanshu Sharma LawRato · Accepted Answer · 2026-10-13T23:13:15+05:30

I hope you are doing well. We can certainly assist you in assessing the SEBI regulatory requirements applicable to your proposed web application. Based on your description, the fact that the application provides free charting tools, publicly disclosed indicator logic, user-configured entry and exit signals, backtesting facilities, and private Telegram alerts without executing trades or issuing public buy/sell recommendations may be relevant to determining its regulatory classification. However, these features alone do not conclusively establish that SEBI registration or compliance with the applicable algorithmic trading framework is unnecessary. We would need to examine the application's actual functionality, the nature of the signals and backtest results provided, how the alerts are generated and delivered, and whether any securities investment advice or research recommendations are being offered. We can then assess the potential applicability of the SEBI Research Analysts (RA) Regulations, Investment Advisers (IA) Regulations, the relevant algorithmic trading framework, and applicable disclosure and disclaimer requirements. Please share the application's website or demo, sample indicator outputs and Telegram alerts, the proposed disclaimer, and details of any planned monetisation or future features. After reviewing these particulars, we can provide a reasoned assessment of the applicable regulatory obligations, potential registration requirements, and the compliance measures that may be appropriate before the application is launched. Our objective will be to help you understand the regulatory position and structure the application in a legally compliant manner. Regards, Himanshu Sharma Advocate Vigilant Legum Law Firm

SEBI regi for open code indicator app (no order, no tips) required?

Adv. Pankaj Bajaj Adv. Pankaj Bajaj

Adv. Himanshu Sharma Adv. Himanshu Sharma