Description

NSE extends CaaS services to empaneled Algo Providers in addition to software vendors, with digital acceptance of related requests available on ENIT portal from March 16, 2026.

Summary

NSE has issued an update to its Colocation as a Service (CaaS) framework, partially modifying Section IV of circular NSE/MSD/67756 dated April 29, 2025. The key change allows empaneled Algo Providers (in addition to previously eligible software vendors) to provide CaaS services to Exchange members. Digital acceptance of rack, IP, and TM enrolment requests on the ENIT portal will be available from March 16, 2026.

Key Points

  • Algo Providers empaneled with NSE (per circular NSE/INVG/69255 dated July 22, 2025) are now eligible to provide CaaS services to Exchange members.
  • Algo Providers must apply for rack subscription via the ENIT portal along with an undertaking per Annexure A.
  • Algo Vendors and trading members must execute a Service Provider Agreement (SPA) per Annexure B and submit a certified true copy when placing a TM Enrollment request on ENIT.
  • All CaaS vendors must submit a Half-yearly System Audit Report along with a VAPT report as per Terms of Reference in circular NSE/MSD/73152 dated March 05, 2026.
  • Digital acceptance for Rack Desire/Allotment, IP Allotment, and TM Enrolment will go live on ENIT from March 16, 2026 (BOD).

Regulatory Changes

This circular partially modifies Section IV of NSE/MSD/67756 (April 29, 2025) and continues from NSE/MSD/73068 (February 27, 2026) and NSE/MSD/73246 (March 11, 2026). The CaaS framework is expanded to include empaneled Algo Providers as eligible service providers, broadening participation beyond software vendors.

Compliance Requirements

  • Algo Providers: Must apply via ENIT portal (https://enit.nseindia.com/ENITInternal/VendorLogin.jsp) with the undertaking in Annexure A format.
  • Algo Vendors & Trading Members: Must execute the Service Provider Agreement (SPA) per Annexure B and submit a certified true copy with TM Enrollment requests on ENIT.
  • All CaaS Vendors: Must submit Half-yearly System Audit Report and VAPT report per TOR guidelines in NSE/MSD/73152 dated March 05, 2026.
  • All other existing colocation terms and conditions per NSE/MSD/67756 remain unchanged.

Important Dates

  • March 16, 2026 (BOD): Digital acceptance of Rack Desire/Allotment, IP Allotment, and TM Enrolment requests goes live on ENIT portal.

Impact Assessment

This update moderately impacts colocation participants and technology service providers. By allowing empaneled Algo Providers to offer CaaS services, NSE increases competition and choice for trading members seeking colocation infrastructure. The introduction of digital workflows on ENIT streamlines administrative processes. The mandatory VAPT and system audit requirements ensure continued oversight of CaaS vendors. There is no direct impact on listed securities or broader market trading rules.

Impact Justification

Operational update affecting colocation participants and algo providers; expands CaaS eligibility and introduces digital workflows, but does not change core trading rules or affect listed securities broadly.