1. LEI Number
LEI stand for Legal Entity Identifier Number, it’s a 20-digit unique number used to identify parties to financial transactions worldwide. It connects to key information that enables clear and unique identification of legal entities participating in financial transactions.
As per the Reserve Bank of India (RBI) notification LEI system has been introduce for all payment transactions of value ₹50 crore and above undertaken by entities (non-individuals) using Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). In the other hand the banks demand LEI no. for major financial transaction.
The object of LEI to improve the quality and accuracy of financial data systems for the better risk management.
2. Requirement for Registration of LEI code/Number
- When the entities (non-individuals) make the transaction of payment of value ₹50 crore and above by using RTGS and NEFT mode. At that time the banks demand the LEI No. from the entities.
- With reference to the RBI circular it is noted that LEI no. is required for any single transaction done through RTGS/NEFT of value ₹50 crore or above during the year.
- This is noted that LEI number is a globally unique number assigned to the entity. Hence, the same LEI number is valid for credit and non derivatives markets.
3. Validity of LEI
- The validity period for LEI is one year from the date that the Legal Entity Identifier is registered/last renewal.
- Annual renewal of LEI is a must for a company or organization that wants to continue to participate in regulated financial transactions.
4. Process for Registration
- At first we go to the home page of LEI i.e. https://www.ccilindia-lei.co.in/ and create an account on the same.
- The applicant who is authorized by the board will create an online account.
- After successfully create the account a confirmation mail received by the LEI department on the authorised mail id. To click on the link for verified the account authenticity.
- After successfully login fill the page of general informations regarding registered entity details/ Entity Identifiers /Legal registered office details/ Headquarter details etc all the mandatory details are necessary to fill out. Then the applicant will submit the online registration form.
- After submit the required online form we need to upload the documents as required by the LEI department.(In this case legal entity is unable to upload documents the entity has to courier the required physical documents to LEIL). All the documents which are demand to upload are given in the LEI portal, the applicant just need to check and download the same.
- The documents which are demanded like Board Resolution, Certificate of incorporation, GST certificates, Indemnity bond, Audited Balance Sheet etc.
- After the submission of required documents, the applicant will make the payment.
- LEIL will verify the documents received, payment and the online form and revert the mail communication in case of any short coming in the online form/documents.
- After successfully verifying all the documents the authority will issued the LEI number through authorized mail. The applicant can also download the certificate in their login account.
5. Fees details for Applying the LEI No.
- ₹5,310/- (4500/- plus GST @ 18%) for New Applications
- ₹3,540/- (3000/- plus GST @ 18%) for Renewal Applications
Author Bio
Nice information