Legal Entity Identifier

Legal Entity Identifier (LEID)

Legal Entity Identifier code is a measure to improve the quality & accuracy of financial data systems for better risk management post Global Financial Crisis. It was designed to create global reference to financial data that identifies legal entities across any country.

LEI is a 20-digit unique code which is assigned to different legal entities engaged in financial transactions. Same is defined by ISO 17442.

Who should apply

Any legal entity in India having borrowing limits (Fund-based or Non Fund-based) greater than or equal to 5cr should apply for LEID mandatorily

Proprietorships
LLP
Partnership Firms
Trusts
Pvt Ltd companies
Public Limited companies
NBFC’s etc

TimeLines

*SCBs - Scheduled Commercial Banks

Validity of LEID

Each LEID is valid for one year from the date of issuance/date of renewal. It is the duty of an entity to have their LEI’s in active status. In case of LEI status changing from Active to Lapsed status, banks may refrain from covering/offering services of OTC derivative products.

Fees Associated with LEI

INR 6000+ Taxes are charged towards creation of LEID in India.

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Faq's

Does Foreign Subsidiary need LEID in India?

Yes, Foreign Subsidiaries in India need LEID for dealing in OTC derivative products. Subsidiaries should have Ultimate parent/Direct parent LEI nos details and shareholding structures, for them to have LEID in india

How to register for LEI?

Any Legal entity seeking a LEI code have to register themselves on www.ccilindia-lei.co.in. An authorised official needs to fill in the details along with supporting documents to obtain the same.

Advent of LEI

In 2011, post financial crisis, G20 called on the financial stability board ( FSB) to provide recommendations for a global Legal Entity Identifier (LEI) for having uniform financial governance structure across the globe Following which, on 1st June’17, Reserve Bank of India issued a notification vide circular RBI/2016-17/314 FMRD.FMID No.14/11.01.007/2-16-17 dated June 01, 2017, Introduction of legal entity identifiers for OTC derivative markets all entities .

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