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. It is a 20-digit unique code to identify parties to transaction worldwide. It provides basic information like name, address, and the type of the entity. It is used to locate entities on the global database and make it easier to conduct global business. It has become a legal requirement for many companies in global trade.
The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.
The Reserve Bank of India vide its notification dated June 1, 2017 made LEI system mandatory for all Over-the-Counter markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives in India, in a phased manner. Non-adherence of the said timelines for obtaining LEI makes the Entities ineligible for participating in the OTC derivative markets.
For more detail, please read the attached Document- Legal Entity Identifier (LEI) – Concept, Introduction, Benefits & Regulations
The information contained herein is based on the information issued by RBI from time to time regarding implementation of LEI in Indian marketplace. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Readers should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.