The Reserve Bank of India (“RBI”) on 05th January 2021 issued a circular introducing the Legal Entity Identifier (LEI), which is a 20-digit number used to uniquely identify parties to financial transactions worldwide.
The Legal Entity Identifier (LEI) is a unique global identifier for legal entities participating in financial transactions (stocks, bonds, futures, forex, etc.). LEI is also known as LEI code or LEI number, which helps a legal entity to be identifiable on a globally accessible database.
Who issues Legal Entity Identifier?
Legal Entity Identifier India Limited – Entities can obtain LEI from any of the Local Operating Units accredited by the Global Legal Entity Identifier Foundation, which is the body tasked to support the implementation and use of LEI. In India, LEI can be obtained from Legal Entity Identifier India Ltd. (LEIL), which is also recognised as an issuer of LEI by the Reserve Bank under the Payment and Settlement Systems Act, 2007.
Why is a Legal Entity Identifier required for my organization?
The Legal Entity Identifier (LEI) contains information about an organization structure and thus answers the questions of ‘who is who’ and ‘who owns whom’. It creates transparency in the global marketplace.
LEI will be assigned on application from the legal entity and after due validation of data. For the organization, LEI will
- Serve as a proof of identity for a financial entity
- Help to abide by regulatory requirements
- Facilitate transaction reporting to Trade Repositories
Reserve Bank has made LEI Registration Mandatory
1) Companies and organisations having aggregate fund-based and non-fund based exposure of credit over INR 5 crore.
Legal entity identifier (LEI) is mandatory for transactions in interest rate, foreign exchange/forex and credit derivative market. The Reserve Bank of India (RBI) has made LEI compulsory for companies and organisations having aggregate fund-based and non-fund based exposure of credit over INR 5 crore.
Legal entity identifier Database will help banks and credit providers in monitoring the exposure of corporate borrowers. It will prevent banks from issuing multiple loans against the same collateral/guarantee/security.
2) If Banking Transaction Above 50 Crore
In Recent Circular Reserve Bank (Notification No. RBI/2020-21/82) of India has Introduced that Legal Entity Identifier (LEI) is mandatory for All Types of banking Transactions Including IMPS, NEFT, RTCG, Fund Transfer, etc if Such Transactions value is more than 50 Crore. LEI is already mandatory for Over the Counter (OTC) Derivatives and Non Derivatives Transactions
What are the documents required for Online LEI Registration?
Documents required are mentioned below-
- Certificate of Incorporation (in case of Company)
- GST Registration Certificate (In case of Proprietor, Firm)
- Details of Partner/Directors
- Partnership Deed or MoA & AoA
- PAN and Aadhar Card of Partner/Director
- IEC Code (if GST No. is not Available)
- Mobile Number and Email id
- PAN Card
- Indemnity Bond (Rs. 600 Stamp – We will Provide Format)
- Last Audit Report (if applicable)
Can a private individual apply for an LEI?
Private individuals cannot receive an LEI.
An LEI can be issued to all legal entities. Branch offices or operating divisions which are not separate legal entities are initially expected to use the LEI of their parent organisation.
What is the LEI price?
| LEI prices (new LEI application and registration fee) |
Cost of LEI renewal |
| 1 year – 4350₹ (₹ 4350 / year) | 1 year – 4350₹ (₹ 4350 / year) |
| 3 years – 11970₹ (₹ 3990 / year) | 3 years – 11970₹ (₹ 3990 / year) |
| 5 years – 15900₹ (₹ 3180 / year) | 5 years – 15900₹ (₹ 3180 / year) |
Renewal of an LEI code –
- An LEI code needs annual renewal. For example- If an LEI issued on 02.01.2018 will have to be renewed before 02.01.2019.
- If the deadline has passed, your LEI will become inactive until renewed again.
- This renewal process is necessary to ensure the data in the Global LEI Pool is relevant and up to date.
Renewal Service for multiple years.
- Since it is a time consuming process LEI offers the automatic renewal for 1-, 3- or 5- year period.
- In the case of multi-year LEI renewal, the LEI Register will take the responsibility to update your data before renewal from the official company registry and renew your LEI code on a yearly basis. Our aim is to keep your LEI data up to date and accurate.
