SDG 9: Industry, Innovation and Infrastructure | SDG 16: Peace, Justice and Strong Institutions | SDG 17: Partnerships for the Goals
Securities and Exchange Board of India (SEBI)
The address by SEBI Chairman Shri Tuhin Kanta Pandey at the Central Depository Services (India) Limited (CDSL) Reimagine Symposium mentions that data has evolved from a compliance by-product into the “new plumbing” and a critical infrastructure layer of India’s capital markets . Since March 2019, unique investors in India have surged from 3.8 crore to 13.9 crore, with demat accounts growing from 3.6 crore to over 21 crore, shifting market character from metropolitan centers to a truly national footprint. This rapid expansion, combined with mobile trading rising to over 20% of activity, requires a shift toward Data Synergy—the seamless integration and flow of information across the securities market ecosystem—to manage systemic risks and ensure market stability.
Pillars of Data Governance and Cyber Resilience SEBI’s strategic framework identifies three core pillars to anchor this expansion in a stable regulatory environment:
Standardisation and Democratisation: To simplify compliance, SEBI introduced Unified Distilled File Formats (UDIFF), which reduced reporting formats by over 90% for Brokers and Depository Participants. Additionally, XBRL filings for financial and non-financial disclosures have been mandated to ensure interoperability.
Institutional Cyber Stewardship: Cyber resilience is now viewed as part of the “financial stability architecture”. Market Infrastructure Institutions (MIIs) must implement incident response frameworks and regular drills to mitigate systemic risks arising from sophisticated cyber threats.
Ethical AI and Algorithmic Accountability: With the rise of algorithmic trading and Artificial Intelligence, SEBI mandates a governance framework that embeds fairness and explainability into system design. Human accountability remains central to ensuring that automated models do not undermine market integrity through bias or opacity.
What is the “Unified Distilled File Format” (UDIFF) in India’s securities market? UDIFF is a standardized file format introduced by SEBI to enhance the efficiency, productivity, and interoperability of data sharing between market participants. By harmonising data identifiers and formats across various Market Infrastructure Institutions, UDIFF simplified the information flow and achieved a 90% reduction in reporting burdens for intermediaries. This standardisation allows regulators and analysts to treat market data as a strategic asset rather than fragmented compliance records, facilitating faster and more accurate decision-making.
Policy Relevance
The SEBI address signals a transition from reactive operational oversight to proactive digital stewardship. By institutionalizing data governance as a boardroom priority, SEBI is ensuring that the “plumbing” of India’s capital markets remains resilient despite exponential growth in participation and technological complexity.
Strategic Impact:
Democratising Market Access: Initiatives like the Electronic Consolidated Account Statement (eCAS) and integration with DigiLocker leverage data synergy to provide regional investors with a unified view of their holdings.
Reducing Systemic Risk: Strengthening the quality and lineage of information flows supports better stress testing and early warning systems, which are only effective when based on accurate, synergistic data.
Optimising Compliance Efficiency: The transition to UDIFF and digital processes (like Forms 15G/H) demonstrates how data synergy can significantly lower the expense of doing business while improving regulatory oversight.
Relevant Question for Policy Stakeholders: How can SEBI and CDSL leverage the ‘Data Synergy’ framework to develop early warning systems that use real-time sentiment data to anticipate and contain retail market volatility?
Follow the full news here: SEBI Address at CDSL Reimagine Symposium | SEBI