What is a Legal Entity Identifier?
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.
The LEI is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO).
The LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. Each LEI contains information about an entity’s ownership structure and thus answers the questions of ‘who is who’ and ‘who owns whom’.
The LEI data pool can be regarded as a global directory that greatly enhances transparency in the global marketplace.
Why obtain a Legal Entity Identifier?
- LEI provides global recognition for your business or organization:
- LEI is a global identifier that is endorsed by the G20 and the Financial Stability Board (FSB). Regulatory Oversight Committee (ROC) of FSB provides overall framework for LEI and the operational arm of ROC, Global Legal Entity Identifier Foundation (GLEIF), Switzerland manages the global LEI system (GLEIS) through LEI issuing entities, known as Local Operating Units (LOUs).
- It is standardized across countries.
- LEI serves as an essential identifier in cross border (international) transactions.
- LEI confers global credibility on your business, financial institution or organization. You can mention your LEI on your website and stationery and incorporate in QR Codes, Bar Codes, Website Seals etc.
- Small & Medium Enterprises (SMEs) that obtain LEIs can stand out from amongst their peers in the domestic and global marketplace.
- As B2B e-commerce expands, LEI is being increasingly used for better identification of buyers and sellers on online marketplaces.
- LEI also allows you to validate parent-subsidiary relationships
- Issued LEIs can be easily searched on the GLEIF database; either on its web interface or via API
- LEI searches always provide updated results since the LEI has to be renewed annually. LEI renewal requires validation of the latest corporate details of the legal entity.
- Regulators such as RBI, SEBI and IRDA may require you to obtain a LEI:
You may require the LEI to comply with regulations as under:
|02-06-2017||OTC derivatives markets||The Reserve Bank of India has mandated the implementation of the LEI system for all participants in the Over-the-Counter (OTC) markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives||Download|
|02-11-2017||Large corporate borrowers||The Reserve Bank of India has mandated the phase-wise implementation of the LEI system for all borrowers of banks in India. Entities without an LEI code are not to be granted renewal / enhancement of credit facilities||Download|
|29-11-2019||Non derivative markets||The Reserve Bank of India has mandated the phase-wise implementation of the LEI system for Non-derivative markets include Government securities markets, money markets and non-derivative forex markets (cash, tom and spot transactions).||Download|
|29-10-2019||Eligible Foreign Entities||Securities and Board of India has mandated LEI code for Eligible Foreign Entities (EFEs) in the commodity derivatives market||Download|
|06-06-2020||Insurers/Corporate borrowers||The Insurance Regulatory and Development Authority of India (IRDAI) has mandated implementation of the LEI system for all insurers and their corporate borrowers.||Download|
|05-01-2021||RTGS/NEFT Transactions||The Reserve Bank of India has mandated the LEI Number for all payment transactions of value ₹50 crore and above undertaken by entities (non-individuals) for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).||Download|
|10-12-2021||Cross Border Transactions||The Reserve Bank of India has mandated the LEI Number for cross border transactions such as capital or current account transactions of ₹50 crore and above. The timeline to obtain LEI Number is October 1,2022.||Download|
|21-04-2022||Legal Entity Identifier (LEI) for Borrowers||The Reserve Bank of India has advised that non-individual borrowers enjoying aggregate exposure of ₹5 crore and above from banks and financial institutions (FIs) shall be required to obtain LEI codes as per the given timeline.||Download|
Who is eligible for obtaining the Legal Entity Identifier?
Any legal entity that is a party to financial transactions can obtain a LEI. This entity could be an incorporated entity, partnership firm, proprietorship firm, bank, mutual fund, asset management company, trust, holding company, special purpose vehicle (SPVs) etc.
Fees for obtaining the Legal Entity Identifier : INR 4,250 + 18% GST per entity
Who manages the LEI System?
About Global Legal Entity Identifier Foundation
Established by the Financial Stability Board in June 2014, the Global Legal Entity Identifier Foundation (GLEIF) is tasked to support the implementation and use of the Legal Entity Identifier (LEI). The foundation is backed and overseen by the Regulatory Oversight Committee, representing public authorities from around the globe that have come together to jointly driver forward transparency within the global financial markets. GLEIF is a supra-national not-for-profit-organization headquartered in Basel, Switzerland.
GLEIF makes available the Global LEI Index; i.e. the only global online source that provides open, standardized and high quality legal entity reference data. By doing so, GLEIF enables people and businesses to make smarter, less costly and more reliable decisions about who to do business with.
About Legal Entity Identifier India Ltd
Legal Entity Identifier India Ltd, 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.
LEIL has been recognized by the Reserve Bank of India (RBI) as an ‘Issuer’ of Legal Entity Identifiers under the Payment and Settlement Systems Act 2007 (as amended in 2015). LEIL has been accredited by GLEIF as a Local Operating Unit (LOU) for issuance and management of LEIs.
About Rubix Data Sciences Pvt. Ltd.
Rubix Data Sciences has been appointed as a Validation Agent for the Legal Entity Identifier by GLEIF and Legal Entity Identifier India Ltd (LEIL).
As per the terms of its appointment, Rubix is responsible, inter alia, for:
- Validating applicant data before an LEI can be issued to the applicant
- Marketing of LEI to prospective legal entities
- Assisting legal entities in the LEI application process so as to make it seamless
Fees for obtaining the Legal Entity Identifier : INR 4,250 + 18% GST per entity
Frequently Asked Question (FAQ)
Q: What is LEI?
A. The Legal Entity Identifier (LEI) initiative is designed to create a global reference data system that uniquely identifies every legal entity, in any jurisdiction, that is party to a financial transaction. More specifically, LEI is a unique 20-digit code that is assigned to a legal entity.
Q: What is the purpose of LEI?
A. The global LEI system (GLEIS) has been set up by regulatory authorities [including G20 and the Financial Stability Board (FSB)] to address the global financial crisis. The LEI is designed to enable the identification and linking of parties to financial transactions in order to manage counterparty risk. Its goal is to help improve the measuring and monitoring of systemic risk and support more cost-effective compliance with regulatory reporting requirements.
Q: What is the LEI structure?
A. The LEI is a 20-character alphanumeric code created using ISO 17442:2012 standard and has the following structure:
- Characters 1-4: Prefix used to ensure the uniqueness among codes from LEI issuers (Local Operating Units or LOUs).
- Characters 5-18: Entity-specific part of the code generated and assigned by LOUs according to transparent, sound and robust allocation policies. As required by ISO 17442, it contains no embedded intelligence.
- Characters 19-20: Two check digits as described in the ISO 1744 standard.
Every eligible legal entity will be assigned unique LEI for use globally. The LEI itself will contain no embedded intelligence.
Q: How to register for LEI codes?
A. You have to contact Rubix Data Science India Private Limited (Rubix) to assist you in the registration and document submission process. Rubix. You can reach them on Email: email@example.com, Call: 18002584421 or visit on https://www.rubixds.com/lei/ and know more…
Q: Who is Rubix Data Science India Private Limited (Rubix)?
A. Rubix has been appointed as India’s first Validation Agent for the LEI by GLEIF and Legal Entity Identifier India Ltd (LEIL) which is accredited by GLEIF as a Local Operating Unit (LOU) for issuing globally compatible LEIs in India.
Q: Who is required to have an LEI?
A. Any legal entity that is a party to financial transactions can obtain a LEI. This entity could be an incorporated entity, partnership firm, proprietorship firm, bank, mutual fund, asset management company, trust, holding company, special purpose vehicle (SPVs) etc.
Q. How much time does it take to process an LEI application?
A. it generally takes 6-48 hrs to issue an LEI after receipt of payment / submission of required documents
Q: Who is an Authorized Person for particular LEI?
A. Every legal entity applying for LEI and operating the portal to modify, update or renew is required to do so through officials authorized for this purpose.
- Main user or primary user who is submitting the online application form for issuance of LEI
- Authorized user – Name and email id of authorized officials named in the LEI online application form
- Secondary user – Name and email id of Secondary authorized officials named in the LEI online application form
A duly authorized person is the official authorized through Letter of Authority / Board Resolution.
Q: What are the documents required to be submitted to Rubix for processing LEI applications?
A. The legal entity will have to share / email the soft copy of documents to firstname.lastname@example.org
- Letter of Authority as per the format specified by Rubix team
- Audited Financial Statements
- Audited financials of Holding and Ultimate parent or auditor’s certificate as per format specified by Rubix team in case of holding company and ultimate parent
Q: Why do LEIs need to be renewed?
A. Renewing the Legal Entity Identifier is necessary to ensure that all information about the company connected to the LEI is up to date. Rubix offers cost effective rate for renewal of LEIs for any period from 1 year to 5 years. In case of multiyear renewal next renewal date will be shown for 1 year only because LEI data needs to be updated every year.