Sebi's Unified Distilled File Formats to Escalate Market Efficiency

Markets regulator Sebi introduces standardised reporting format, Unified Distilled File Formats (UDiFF), for brokers, clearing members, and depository participants. This initiative is expected to save over Rs 200 crore in five years while reducing reporting requirements by 90%. The new format enhances efficiency and adaptability in the securities market.

In a significant move, markets regulator Sebi has announced the implementation of a standardised reporting format aimed at brokers, clearing members, and depository participants. Dubbed Unified Distilled File Formats (UDiFF), the initiative is projected to save more than Rs 200 crore over the next five years by reducing reporting requirements by 90%.

UDiFF is designed to boost efficiency, productivity, and interoperability at lowered costs, according to Sebi. Previously, members had to navigate through over 200 proprietary formats to file daily reports for processing transactions with Market Infrastructure Institutions (MIIs) such as exchanges, clearing corporations, and depositories. The new system reduces these formats to just 23, significantly easing operational complexities and costs.

The transition to UDiFF has been managed in phases, accompanied by a parallel run of the old and new formats for two quarters. The overhaul not only streamlines information flow among MIIs but also positions the market for future regulatory needs, fostering a more efficient and forward-looking market ecosystem.

(With inputs from agencies.)