Legal Entity Identifier (LEI) Number

What is Legal Entity Identifier (LEI) ?

The LEI is a 20-digit, alpha-numeric code that identifies legal entities participating in financial transactions. Each LEI is unique and contains reference information that enables simple and quick identification of an entity. As an international standard (based on ISO 17442), all LEI information is openly published and accessible to all.

While companies often have business registration numbers in the country they are formed in, an LEI is an international standard designed for more seamless cross-border transactions. Business registration standards will vary according the country, but the LEI format is the same across the globe.

Why LEI ?

• Improved risk management in firms;
• Better assessment of micro and macro prudential risks;
• Facilitation of orderly resolution;
• Containing market abuse and curbing financial fraud;
• Enabling higher quality and accuracy of financial data overall

Who has created  LEI ?

After the worldwide financial crisis in 2007-09, leaders from the world’s largest economies, operating through the G-20 and Financial Stability Board (FSB), agreed to develop a coordinated solution to help overcome these impediments. This effort resulted in a public-interest initiative that is now the global LEI system..

LEI in India

Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF)–the entity tasked to support the implementation and use of LEI. In India, LEI code may be obtained from Legal Entity Identifier India Ltd (LEIIL), a subsidiary of the Clearing Corporation of India Limited (CCIL), which has been recognized by the Reserve Bank as issuer of LEI under the Payment and Settlement Systems Act, 2007 and is accredited by the GLEIF as the Local Operating Unit (LOU) in India for issuance and management of LEI.

Who needs an LEI?

An LEI can be requested for all parties in a financial transaction. The list of entities eligible to apply for LEI code in India are:

• Sole Proprietorships
• Limited Liability Partnerships
• Partnership Firms
• Trusts
• Private Limited Companies
• Public Limited Companies
• Other entities : Government Companies, One Person Company,  Insurance Companies, Housing Finance Companies, Non-Banking Finance Companies, Non profit companies, Special Purpose Vehicles – Trusts, Special Purpose Vehicles – Companies, SPV – Partnership Firms, SPV – Co-operative Societies or Multistate Co-operative Societies Mutual Fund, Mutual Funds-Sub Scheme,  Alternative Investment Fund (AIF), AIF- Sub Scheme,  Nationalised Banks, Scheduled Urban Cooperative Bank, Banking Companies – Others, Stand Alone Primary Dealers, Public Financial Institutions, Unlimited Companies, Cooperative Societies or Multistate Cooperative Societies, Government Organizations, Companies Limited by Guarantee etc

RBI Circular on LEI

RBI has already implemented the LEI code for all market participants in Over-the-Counter (OTC) derivative products in interest rate, currency and credit markets. It was also made applicable for large corporate borrowers. Continuing with this endeavour to improve transparency in financial markets, it is proposed to implement the LEI mechanism for all financial market transactions undertaken by non-individuals, in interest rate, currency or credit markets

Schedule for OTC Market :

Phase	Entities	Date by which the LEI code is to be Obtained
Phase I	Entities regulated by RBI / SEBI / IRDA / PFRDA and Corporates With Net Worth above Rs 10000 mn	August 1, 2017
Phase II	Corporates With Net Worth between Rs 2000 mn and Rs 10000 mn	October 1, 2017
Phase III	Corporates With Net Worth between Rs 700 mn and Rs 2000 mn	December 1, 2017
Phase IV	Corporates With Net Worth of Rs 700 mn and below	March 31, 2018

Extension in Timeline for OTC derivatives For obtaining LEI’s for OTC derivatives contracts : Extended till April 30, 2018

Schedule for Bank Borrowers.

Schedule for implementation of LEI

Total Exposure to SCBs	To be completed by
₹ 1000 crore and above	Mar 31, 2018
Between ₹ 500 crore and ₹ 1000 crore	Jun 30, 2018
Between ₹ 100 crore and ₹ 500 crore	Mar 31, 2019
Between ₹ 50 crore and ₹ 100 crore	Dec 31, 2019

RBI Circular : Introduction of Legal Entity Identifier for large corporate borrowers : 02 Nov 2017

Schedule for Implementation of LEI in the Money market, G-sec market and Forex market

Phase	Net Worth of Entities	Proposed deadline
Phase I	above Rs.10000 million	Dec 31, 2019
Phase II	between Rs.2000 million and Rs 10000 million	Dec 31, 2019
Phase III	up to Rs.2000 million	March 31, 2020

RBI Circular : Legal Entity Identifier: Extension of deadline : Dated: 26 Apr 2019

What if companies do not comply ?

• Entities without an LEI code would not be eligible to participate in the OTC derivative markets, after the date specified in the schedule
• Borrowers who do not obtain LEI as per the schedule are not to be granted renewal / enhancement of credit facilities.

LEI Issuance Process in India

1. Go to https://www.ccilindia-lei.co.in/
2. Download the documents under Tab “Legal Doc Download“.  Select from Request type “New” (Incase of new application) and “Legal Form”.  Sample formats for Undertaking, Board Resolution and POA.
3. Self-registration on online form: click on create account.(https://www.ccilindia-lei.co.in/USR_LOGIN_REGISTER.aspx)
4. Fill in the information asked. Use the working email ID of an authorized person.
5. Click on submit and you will get a mail to activate your account with username as email ID and password as chosen
6. Please ensure that the status of the online form is “Request generated/pending documentation”
7. Login using the details and click on LEI service. From the menu choose Register
8. Fill in the details asked. Keep CIN number and PAN of the firm handy as they are the only mandatory details asked
9. Once filled with details click submit. It will ask whether the Client is linked to a parent company. If yes then provide details. If no, enter non-consolidated Firm and enter submit
10. A four digit reference number will be generated which is to be used in further communication
11. An acknowledgement mail will be received on the registered mail id. It will have a set of documents to be prepared in accordance with constitution code of the client
12. Prepare the docs and send/hand-deliver on address as mentioned below. Do quote the four digit reference number on envelope : 
    • Address to courier documents: Legal Entity Identifier India Limited (LEIL) (The Clearing Corporation of India Ltd) CCIL bhavan, 3^rd floor S.K.Bole Road, Dadar (West) Mumbai 400028
13. Verification of online form and documents: LEIL will tally the information submitted online and documents presented. LEIL may ask for additional documents if necessary during verification process
14. In order to carry out changes as notified by CCIL through mail, go to login-Home page-View details-Edit-Submit
15. After successful verification, the Payment tab will be activated on the login screen. For new registration charges are Rs. 7080 (Rs. 6000 + 1080 GST). Payment details is as follows:
    • For NEFT payment:
      • Account holder name: Legal Entity Identifier India Limited
      • Account number: 05420350001234
      • Bank name: HDFC Bank Ltd
      • Branch name: Kamala Mills Compound, Lower Parel
      • IFSC code: HDFC0000542
    • For DD payment:  in favor of Legal Entity identifier India Limited. In this case, reference number must be written at the reverse side of the DD. Send the DD to the following address
      • Legal Entity Identifier India Limited, CCIL Bhavan, Third Floor,S. K. Bole Road, Dadar (West), Mumbai – 400 028
16. Once the payment details are submitted, LEI will be generated within 2-3 working days.

LEI Validity

An LEI is valid for one year from the date of issuance/last renewal date.

LEI Issuance Charges

• New Registration: Rs. 7080 (Rs. 6000 + 1080  GST)
• Renewal Charges: Rs. 4130 (Rs. 3500 + 630 GST)

Search LEI Online

LEI of the company can be searched on below link.

Search our Database for LEIs

How can we help ?

Our team is well placed to assist you with the initial registration as well as provide you with further detail on the LEI.

Reference

1. RBI Circular : Legal Entity Identifier: Extension of deadline : Dated: 26 Apr 2019
2. The Global Legal Entity Identifier Foundation (GLEIF)
3. OPENLEIS
4. RBI Circular: Introduction of Legal Entity Identifier for OTC derivatives markets : Dated : 01 Jun 2017
5. RBI Circular : Introduction of Legal Entity Identifier for large corporate borrowers : 02 Nov 2017 
6. RBI First Bi-monthly Monetary Policy Statement, 2018-19
7. User Guide for Registration Purpose
8. FAQ related to LEI
9. FSB Report: A Global Legal Entity Identifier for Financial Markets 
10. The Legal Entity Identifier Regulatory Oversight Committee – LEI ROC
11. Search our Database for LEIs