Legal Entity Identifier Registration

Legal Entity Identifier (LEI) Number

The Legal Entity Identifier (LEI) is a distinctive code given to legal entities engaged in a financial transaction.

The LEI is a 20 digit alpha-numeric code which is formulated as a crucial measure to enhance the quality and accuracy of financial data systems for better risk management. It contains particulars about an entity’s ownership structure and  thus enable us to know “who is who” and “who owns whom”.

The code is based on the ISO 17442 standard developed by the International Organization for Standardization (ISO) and can act as global directory which will augment transparency in the OTC derivatives markets.

How to obtain LEI Registration?

Entities can obtain LEI from any of the Local Operating Units (LOUs) recognized by the Global Legal Entity Identifier Foundation (GLEIF).  GLEIF is a not-for-profit organization created to support the implementation and use of the LEI.

In India, LEI code may be obtained from Legal Entity Identifier India Ltd (LEIIL) which has been recognized by the Reserve Bank as issuer of LEI and is accredited by the GLEIF as the Local Operating Unit (LOU) in India for issuance and management of LEI.

LEIL will allocate LEIs to any legal identity including but not limited to all intermediary institutions, banks, mutual funds, partnership companies, trusts, holdings, special purpose vehicles, asset management companies and all other institutions being parties to financial transactions.

LEI will be assigned on request from the legal entity and after due authentication of information. For the organization, LEI will:

• Serve as a proof of identity for a financial entity

• Help to abide by regulatory requirements

• Facilitate transaction reporting to Trade Repositories

Applicability of LEI Number

A. Participants in Over-the-Counter (OTC)

All the participants (current and future) in Over-the-Counter (OTC) markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives in India would be required to obtain the unique LEI code in a phased manner.

Entities not obtaining the LEI code would not be eligible to participate in the OTC derivative markets, after the date specified in the schedule*.

B. LEI for Large borrowers

Banks shall mandatorily necessitate their large corporate borrowers having aggregate fund-based and non-fund based exposure of ₹5 crore and above from any bank to obtain LEI registration.

Borrowers who do not obtain LEI as per the schedule** shall not be granted renewal / enhancement of credit facilities. A separate roadmap for borrowers having exposure between ₹ 5 crore and upto ₹ 50 crore would be issued in due course. Once the LEI code is obtained, banks shall also ensure the renewal of the codes as per GLEIF guidelines by the borrowers.

Schedule for implementation of LEI by large borrowers

Procedure for Obtaining LEI Registration

Below mentioned procedure is a checklist that is applicable for companies and the procedure may vary slightly if the constitution is LLP/Proprietorship/Partnership/Trust etc.

• Collection of documents as per the format prescribed.
• Authorize an applicant through a Board resolution to create an account with Legal Entity Identifier India Ltd (LEIIL) online.
• Issue a Power of Attorney in favour of the Authorised Signatory.
• Submission of Online application form for issuance of LEI.
• The payment for the application can be done by Net Banking/Credit/Debit Card/Demand Draft mode.
• Couriering of the Board Resolution  and Demand Draft (if the payment mode selected  is DD) to the address mentioned below:

Legal Entity Identifier India Limited (LEIL)

CCIL Bhavan, 3rd Floor, S. K. Bole Road, Dadar (West), Mumbai - 400028

• Verification of online form, documents and payment by LEIL.
• Once the payment and document verification is successful, LEI code is issued.