The Securities and Exchange Board of India (SEBI) has launched a new reporting system, Unified Distilled File Formats (UDiFF), expected to save the Indian market ecosystem approximately ₹200 crore over the next five years. This initiative aims to streamline business operations for market participants, particularly brokerages and fintech firms, by reducing the complexity of reporting formats.
Previously, brokerages, clearing members, and depository participants submitted multiple daily reports to market infrastructure institutions (MIIs) like exchanges and depositories, using over 200 different formats. This led to operational inefficiencies and increased costs. SEBI’s introduction of UDiFF simplifies the process, cutting the number of reporting formats from more than 200 to just 23, reducing the reporting workload by 90%.
SEBI highlights several advantages of the new system. First, UDiFF enhances ease of doing business by standardizing the reporting process, which reduces operational time and effort for market participants. The simplified formats are projected to save the market over ₹200 crore in the coming years due to increased efficiency.
Additionally, the system encourages innovation by lowering integration costs with MIIs, making it easier for new fintech firms to enter the market. SEBI ensured a smooth transition by rolling out the new formats alongside the old system for two quarters, allowing participants to adapt without incurring extra development costs. The standardized formats have also improved information flow between MIIs, further streamlining operations.
SEBI UDiFF system marks a major step toward simplifying market operations, reducing costs, and fostering innovation. By reducing reporting formats and improving operational efficiency, SEBI is helping the entire market ecosystem operate more smoothly and encouraging fintech firms to thrive in a more streamlined environment.
