March 22, 2022 | Mumbai: Rubix Data Sciences (Rubix), a technology and analytics-based B2B risk management and monitoring platform, has been appointed as a Validation Agent of the Legal Entity Identifier India Ltd. (LEIL) in India.
An agreement to this effect was signed between Rubix and Legal Entity Identifier Ltd (LEIL) which has been accredited by the Global Legal Entity Identifier Foundation (GLEIF), headquartered in Switzerland, as a Local Operating Unit for issuance and management of Legal Entity Identifiers (LEIs). LEIL is a wholly owned subsidiary of the Clearing Corporation of India Ltd.
The LEI is a 20-character, alphanumeric code that uniquely identifies a legal entity or structure that is party to a financial transaction in any jurisdiction. 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, known as the Global LEI Index, is publicly available on GLEIF’s website and can be regarded as a global directory that greatly enhances transparency in the global marketplace.
The LEI helps to build trust between businesses, financial institutions and organisations, regardless of sector, because it serves as an essential identifier which facilitates cross-border and domestic transactions. Small and medium-sized enterprises (SMEs) that obtain the LEI can stand out amongst peers in the marketplace. Various regulators – including Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority of India (IRDAI) – already require entities to obtain a LEI for certain transactions.
As a Validation Agent, Rubix will be responsible for the following:
- Maintaining procedures to verify the existence and eligibility of entities applying for LEI
- Procuring relevant documents for timely issuance of LEI
- Validating legal entity-reference data and parent data
- Ensuring that clients apply for LEI renewal in a timely manner
- Marketing of LEIs to prospective legal entities
Stephan Wolf, CEO, GLEIF comments: “The LEI has a vital role to play in creating greater trust and transparency for businesses around the world. India has already made progress in realizing this vision by supporting LEI adoption through regulatory means. The appointment of Rubix as the latest Validation Agent in the Global LEI System presents a significant opportunity to scale-up voluntary adoption of the LEI within a key global market and support more businesses in their efforts to securely engage in the global marketplace.”
Mohan Ramaswamy, Co-Founder and CEO of Rubix Data Sciences, said: “Rubix is privileged to be a Validation Agent, working with LEIL to issue LEIs to the market. The LEI provides global credibility and recognition for Indian businesses in international markets. Rubix shall endeavour to spread awareness about the importance of LEIs and assist business entities, particularly SMEs, to obtain the LEI smoothly.”
About Rubix Data Sciences Pvt. Ltd.
Rubix Data Sciences Pvt. Ltd. helps you to take prudent credit risks, build a robust supply chain and monitor compliance for your business partners in India and around the world. Rubix helps you to collect payments in time from your debtors, helping generate predictable cash flows.
Set up by highly experienced Risk Professionals who have worked extensively in the credit, legal and supply chain information domains, Rubix has been awarded the Certificate of Recognition at the IMC Digital Technology Awards 2020 in the category: Most Promising Start-Up IT Company in Enabling Digital Transformation. In recognition of its commitment to information security, Rubix has received the IS0 27001:2013 accreditation from LRQA. Rubix has been appointed as Validation Agent for the Legal Entity Identifier (LEI) by Legal Entity Identifier Ltd, the Local Operating Unit accredited by the Global Legal Entity Identifier Foundation (GLEIF), Switzerland.
The Rubix platform and its suite of reports, products and services are based on its extensive database of structured and unstructured data aggregated from over 120+ sources, customized predictive analytics and proprietary technology. Through its solutions, Rubix provides deep insights to Credit, Risk, Supply Chain and Compliance professionals in 375+ Banks, Credit Insurance Companies, Fintechs and Corporates, facilitating quicker and more effective decision-making.
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 the Global Legal Entity Identifier Foundation (GLEIF)
Established by the Financial Stability Board in June 2014, the Global Legal Entity Identifier Foundation (GLEIF) is a not-for-profit organization created to support the implementation and use of the Legal Entity Identifier (LEI). GLEIF is headquartered in Basel, Switzerland.
GLEIF services ensure the operational integrity of the Global LEI System. GLEIF also makes available the technical infrastructure to provide, via an open data license, access to the full global LEI repository free of charge to users. GLEIF is overseen by the Regulatory Oversight Committee, which is made up of representatives of public authorities from across the globe. For more information, visit the GLEIF website at https://www.gleif.org/en.
APPENDIX
Why obtain a Legal Entity Identifier?
- The LEI provides global recognition for your business or organization:
- The LEI is a global identifier that is endorsed by the G20 and the Financial Stability Board (FSB). The Global Legal Entity Identifier Foundation (GLEIF), ensures the operational integrity of the Global LEI System. GLEIF is overseen by the Regulatory Oversight Committee (ROC) which is made up of representatives of public authorities from around the globe. LEI issuers – also referenced as Local Operating Units (LOUs) – are the organizations authorized to issue LEIs to legal entities engaging in financial transactions.
- It is standardized across countries.
- The LEI serves as an essential identifier in cross border (international) transactions.
- The 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 including Government securities markets, money markets and non-derivative forex markets (cash, tom and spot transactions). | Download |
| 29-10-2019 | Eligible Foreign Entities | Securities and Exchange 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 |
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.