What is Legal Entity Identifier and how to obtain it
The Legal Entity Identifier (LEI) code has been conceived for better risk management post the Global Financial Crisis. LEI code is a unique 20-character alphanumeric string (for example 529900T8BM49AURSDO55) used to distinctly represent a Legal Entity (company, organization, firm, government body, etc) on a worldwide basis.
The LEI for the participants of the OTC derivatives market was implemented in 2017. RBI vide Circular dated 02.11.2017 directed banks to advise their existing large corporate borrowers having total exposures of ₹50 crore and above to obtain LEI as per the schedule given below:
|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|
A separate roadmap for borrowers having exposure between ₹ 5 crore and upto ₹ 50 crore is to be issued by RBI.
As per RBI directive, if a borrower does not obtain LEI as per the schedule, they shall not to be granted renewal / enhancement of credit facilities.
Large borrowers should obtain LEI for their parent entity as well as all subsidiaries and associates.
The 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 recognised 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.
How to obtain LEI fromLegal Entity Identifier India Ltd (LEIIL)?
Step 1: Download the list of Documents required for registration as per the respective legal form of the legal entities available in the Downloads > Legal Docs Download Tab.
The LEI registration involves four pages of information as follows: 1. Company Information Page 2. Direct Parent Page (Holding Company Information) 3. Ultimate Parent Page 4. Payment Page.
Step 3: Courier the documents: The entity will be required to submit the necessary documents including Board Resolution and / or Power of Attorney in the format as specified by LEIL. Entity has to send the Demand draft also in case if they have selected “Demand Draft” as payment mode. The address to courier the document is:
Legal Entity Identifier India Limited (LEIL) (The Clearing Corporation of India Ltd.) CCIL Bhavan, 3rd Floor, S. K. Bole Road, Dadar (West), Mumbai – 400028.
Step 4: Verification of online form, documents and payment: LEIL will verify if the mandatory list of documents is submitted and payment is received. LEIL may ask for additional documents if necessary during verification process. LEIL may suggest certain online form changes if required.
Step 5: LEI Issuance: After successful payment and document verification, LEI number is issued. An email, containing the LEI number is sent to the legal entity which is to be provided to all your banks. A digitally signed invoice will be provided to the legal entity through e-mail after the issuance of LEI number.
How much time does it take to process an LEI application?
After receipt of documents and payment, it takes generally 3 to 5 working days to issue an LEI.