Legal Entity Identifier (LEI)

Introduction

1. A Legal Entity Identifier (or LEI) is a 20-character identifier that identifies distinct legal entities that engage in financial transactions.

2. It is defined by ISO 17442.

3. The LEI is a global standard, designed to be non-proprietary data that is freely accessible to all. As of October 2017, over 630,000 legal entities from more than 195 countries have now been issued with LEIs

Structure

1. The structure of the global LEI is determined in detail by ISO Standard 17442 and takes into account Financial Stability Board (FSB) stipulations.

Legal Entity Identifier (LEI)

  • Why LEI is required for the Organization

1. The Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction, in any jurisdiction.

2. Legal Entity Identifier India Limited (LEIL) will assign 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.

3. LEI will be assigned on application from the legal entity and after due validation of data. For the organization, LEI will

1. Serve as a proof of identity for a financial entity

2. Help to abide by regulatory requirements

3. Facilitate transaction reporting to Trade Repositories

LEI in India – Legal Entity Identifier India Private Limited (LEIL)

1) Legal Entity Identifier India Limited – A Wholly Owned Subsidiary of The Clearing Corporation of India Ltd. acts as a Local Operating Unit (LOU) for issuing globally compatible Legal Entity Identifiers (LEIs) in India

  • LEI Applicability

1) RBI Circular No. RBI/2016-17/314 dated June 01, 2017

1. RBI has decided to decided to implement the LEI system for all participants in the Over-the-Counter (OTC) markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives in India in a phased manner

Phase Entities Date by which the LEI code is to be obtained
Phase I Entities regulated by RBI / SEBI / IRDA / PFRDA and Corporates With Net Worth above Rs 10000 mn August 1, 2017
Phase II Corporates With Net Worth between Rs 2000 mn and Rs 10000 mn October 1, 2017
Phase III Corporates With Net Worth between Rs 700 mn and Rs 2000 mn December 1, 2017
Phase IV Corporates With Net Worth between Rs 700 mn and below March 31, 2018

1. RBI Circular No. RBI/2017-18/82 dated November 02, 2017

1) As per RBI Circular No. RBI/2017-18/82 dated November 02, 2017, Banks shall advise their existing large corporate borrowers having total exposures of 50 crore and above to obtain LEI

2) A separate roadmap for borrowers having exposure between 5 crore and upto 50 crore would be issued in due course.

Schedule for Implementation of LEI
Total Exposure to SCBs (Scheduled Commercial Banks) To be completed by
1000 crore and above Mar 31, 2018
Between 500 crore and 1000 crore Jun 30, 2018
Between 100 crore and 500 crore Mar 31, 2019
Between 50 crore and 100 crore Dec 31, 2019
  • Requirements/Procedure for LEI

1. Get the Documents with Formats

2. Authorized Applicant by Board – for Creation of Account

3. Submission of Online Registration Form

4. Posting of Physical Documents

5. Verification by LEIL

6. Payment of Rs.5,000/- + Applicable Taxes (GST @ 18%) = 5,900/-

Note: Payment needs to be made only after receiving Email from LEIL

Account Holder Name: Legal Entity Identifier India Limited

Account number : 05420350001234

Bank Name  : HDFC Bank Ltd. Bank

Branch Name : Kamala Mills Compound, Lower Parel

IFSC Code : HDFC0000542

1. After Payment 3-5 Working Days to issue LEI by LEIL.

Disclaimer : All the Information provided in the Article is for reference purpose only & not a professional advice.

Author Bio

Qualification: CA in Job / Business
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Location: Delhi, New Delhi, IN
Member Since: 06 Dec 2018 | Total Posts: 1

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2 responses to “Legal Entity Identifier (LEI) – A MANDATE IN THE FUTURE”

  1. CA BHARAT JAIN says:

    FEES HAS BEEN REVISED TO RS. 5900/- WEF FROM 01.12.2018

  2. CA BHARAT JAIN says:

    THE FEES HAS BEEN REVISED TO RS.5000+GST RS900= 5900/- WITH EFFECT FROM 01.12.2018

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