SEBI Introduced New Reporting System: Unified Distilled Filing Formats

The market regulator, the Securities and Exchange Board of India (SEBI) has introduced Unified Distilled Filing Formats (UDiFF), which marks a significant milestone in India’s financial markets. The new innovative reporting system has streamlined the regulatory landscape, reducing the burden on market participants and fostering a more efficient ecosystem.

Prior to UDiFF, market members were required to file over 200 different reports daily with various market infrastructure institutions (MIIs). This cumbersome process not only increased operational costs but also hindered innovation and efficiency. By consolidating these reports into just 23 standardised formats, SEBI has achieved a remarkable 90% reduction in reporting requirements.

The benefits of UDiFF extend far beyond mere administrative efficiency. The system is estimated to save the market ecosystem over ₹200 crore in operational expenses over the next 5 years. This reduction in costs will create a more level playing field, especially for smaller players and fintech startups, by lowering the barriers to entry.

Moreover, UDiFF has facilitated seamless interoperability between MIIs and market members. The standardised reporting formats have streamlined the flow of information, reducing the risk of errors and delays. This enhanced efficiency has not only improved market functioning but also bolstered investor confidence.

SEBI’s initiative to introduce UDiFF is a testament to its commitment to fostering a robust and efficient financial market. By simplifying the regulatory landscape and reducing costs, the regulator has created a more conducive environment for innovation and growth.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.