SEBI Proposes Decentralised API Framework for STP Trade Processing

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  • Last Updated on 22 May, 2026

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SEBI decentralised API

Consultation Paper; Dated: 19.05.2026

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing changes to ease the framework for Straight Through Processing (STP) of trades.

The consultation seeks stakeholder feedback on measures aimed at improving efficiency, reducing costs and enhancing service delivery under the existing STP ecosystem.

1. Objective of the Consultation Paper

SEBI has stated that the consultation paper seeks comments on proposed enhancements to the existing STP framework with the objective of:

  • Reducing transaction latency
  • Lowering operational costs
  • Improving efficiency in trade processing
  • Enhancing service delivery for market participants

The proposal aims to modernise post-trade infrastructure and streamline communication between market intermediaries.

2. Proposal to Transition From STP Hub-Based Architecture

A key proposal under the consultation paper is the transition from the current centralised STP Hub-based architecture to a decentralised Application Programming Interface (API)-based framework.

Under the proposed model, communication and trade processing between market participants and service providers would be enabled through direct API connectivity rather than routing through a central STP Hub.

3. Proposed Benefits of API-Based Framework

The decentralised API-based architecture is expected to:

  • Reduce processing delays and latency
  • Improve operational efficiency
  • Lower transaction and infrastructure costs
  • Enhance service quality and system responsiveness
  • Improve resilience by reducing dependency on a centralised framework

The proposal also seeks to support faster and more seamless processing of trade-related information.

4. Impact on Market Participants

The proposed framework is intended to improve operational efficiency for participants involved in trade processing while maintaining continuity in market operations.

The changes are expected to strengthen post-trade infrastructure and provide a more scalable and technology-driven processing environment.

5. Public Comments Invited

SEBI has invited comments and feedback from stakeholders on the consultation paper.

Comments may be submitted up to June 9, 2026.

6. Objective of the Proposal

The proposal aims to modernise and ease the STP framework through a more efficient, decentralised and technology-enabled trade processing mechanism while reducing costs and improving service delivery for market participants.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied