Legal Entity Indentifier (LEI) Registration

 LEGAL ENTITY INDENTIFIER (LEI)

 

What is an LEI number?

LEI, or Legal Entity Identifier, is a unique identifier for persons that are legal entities including companies, charities and trusts. The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code, to uniquely identify legally distinct entities that engage in financial transactions.

Registered LEI number carries the following information about the entity:           

  • The official name of the legal entity as recorded in the official registers.
  • The registered address of that legal entity.
  • The country of formation.
  • The codes for the representation of names of countries and their subdivisions.
  • The date of the first LEI assignment; the date of last update of the LEI information; and the date of expiry.

Who needs an LEI number?

According to the Mifid II directive 2014/65/EL, LEI codes are mandatory for all legal entities who trade in securities. The Reserve Bank of India has mandated the use of LEIs by all companies trading in OTC markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives in India.

 

LEI use by large corporate borrowers is also mandated by the Reserve Bank of India, as per the RBI Notification dated November 2, 2017. As with the directive, mandatory adoption of LEIs is being phased in over the period March 31, 2018 through to December 31, 2019. With corporate borrowers who borrow amounts of ₹ 1000 crore and above being required to obtain an LEI prior to Mar 31, 2018 and those borrowing between ₹ 500 crore and ₹ 1000 crore requiring LEIs prior to Jun 30, 2018. In 2019, corporate entities borrowing between ₹ 100 crore and ₹ 500 crore will need to obtain an LEI prior to Mar 31, 2019 and those borrowing between ₹ 50 crore and ₹ 100 crore needing an LEI before Dec 31, 2019.

 

In a notification dated November 29 2018, the RBI mandated use of LEIs by all participants, other than individuals, who wish to transact in markets regulated by the RBI including, Government securities markets, money markets (markets for any instrument with a maturity of one year or less) and non-derivative forex markets (transactions that settle on or before the spot date). LEIs are again to be phased in based on the Net Worth of the entity as follows:

  • Entities valued at more than Rs.10000 million will need to obtain an LEI prior to April 30, 2019.
  • Those valued between Rs.2000 million and Rs 10000 million will require an LEI prior to August 31, 2019.
  • Entities valued up to up to Rs.2000 million will need to obtain an LEI before March 31, 2020.

Where can you get an LEI number?

LEI are issued by Global Legal Entity Identifier Foundation (GLEIF), a not-for-profit organization, created to support the implementation and use of the LEI. The Global Legal Entity Identifier Foundation (GLEIF) is responsible for monitoring and ensuring high quality Legal Entity Identifier (LEI) data.

 

LEIs are issued by "Local Operating Units" (LOUs) of the Global LEI System operating in India.

 

What is the validity of LEI Number?

LEIs are issued to entities with a validity period of 1 year. And there after it needs to be renewed annually.  However, LEI registration can be taken for maximum of 5 years with automatic renewal option after every year. Which means the registration will be automatically renewed after the end of yearly and there is no need to apply for renewal process every year.

 

What is the time required in obtaining the LEI Number?

It will take 24-36 hours to complete the entire process and you will get LEI number directly on your email.

 

Where we can help

PKP can help you in getting the LEI number for your entity in least possible time and cost.

 

Contact Person : Mr. Prakash k Gupta

Email - pgupta@pkpconsult.com

Telephone Numbers : +91-11-23382207/ 23388753

Mobile Number : +91-9811031841