Market regulator Securities and Exchange Board of India (SEBI) says that, over the next five years, the market ecosystem could save an estimated Rs200 crore by using the new standardised file formats, termed 'unified distilled file formats' (UDiFF), that will enhance efficiency, productivity and interoperability at reduced costs.
SEBI says it undertook an initiative on harmonisation, rationalisation and standardisation of reports and, as a result, the total formats have been reduced from over 200 to 23.
Trading members (TMs), clearing members (CMs) and depository participants (DPs) operating in the Indian securities market are required to file multiple reports daily for processing various types of transactions with their respective market infrastructure institutions (MIIs), such as exchanges, clearing corporations and depositories. Previously, these report formats were proprietary to each MII, resulting in more than 200 formats being filed by members daily for processing various types of transactions.
"UDiFF, which is in conformity with international ISO standards, has been implemented in a phased manner. To facilitate a smooth transition for members and the markets, there was a parallel run of the existing system for nearly two quarters, and the old file formats were phased out in a staggered manner," the market regulator says.
According to SEBI, using UDiFF for reporting will help improve the ease of doing business and operational efficiency through standardised reporting and a reduction in reporting formats by over 90% for brokers, DPs and CMs.
UDiFF reporting has a lower integration cost with MIIs for new fin-techs and offers interoperability between MIIs and member interface, facilitating seamless transition with no additional development costs.
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