MUMBAI: The market watchdog Sebi has done away with as many as 90 per cent of the reporting requirements for market makers like trading members, clearing members, and depository participants.
Issuing the new guidelines under what is called the unified distiller file formats (UDiFF), Sebi Thursday said the move is to promote standardised reporting and will help savings to the tune of over Rs 200 crore over the next five years, as as much as 90 per cent of reporting requirements for brokers/members, lower cost of entry for new fintechs, are done away with.
Currently, market makers 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.
As Sebi has harmonised, rationalised, and standardised the reporting norms the number of total formats has been reduced from over 200 to 23 now. The new standardised file formats, termed UDiFF will enhance efficiency, productivity, and interoperability at reduced costs the statement said.
The statement said the UDiFF Implementation is being done 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.
As a result of the massive reduction in reporting. Formats the members are estimated to save over Rs 200 crore over the next five years owing to lower operational expenses.