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.
How can my organization obtain a Legal Entity Identifier?
The LEI will be assigned on receipt of an application from the legal entity and after due validation of data provided by it.
To proceed with your application for the LEI, please fill this form:
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.
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