The Legal Entity Identifier (LEI) is a 20-character global reference number that uniquely identify every legal entity which is a party to financial transaction. For the purpose of improving the quality and accuracy of financial data system and ensure better risk management, the Reserve Bank of India started implementing the requirement of The Legal Entity Identifier (LEI) in a phased manner.
Initially the Reserve Bank of India through its initial circular RBI/2016-17/314 dated 01st June, 2017 implemented mandatory LEI registration for all participants in the OTC Markets for Rupee Interest Rate Derivatives, Foreign Currency Derivatives and Credit Derivatives in India.
In next phase, the Reserve Bank of India through its circular RBI/2017-18/82 dated 02nd November, 2017 implemented mandatory LEI registration for all borrowers of banks having total fund based and non-fund-based exposure of Rs. 50 Crores or more.
Borrowers who fails to get LEI will not be granted renewal or enhancement of credit facilities.
Further the Reserve Bank of India through its circular RBI/2018-19/83 dated 29th November, 2018 implemented mandatory LEI registration of all participants (other than individuals) undertaking transactions in the markets regulated by RBI viz. Government Securities Market, Money Markets and Non-Derivative Forex Markets.
Currently Insurance Regulatory and Development Authority of India (IRDAI) through its circular IRDAI/F&A/CIR/MISC/134/06/2020 dated 05th June, 2020 advised insurers to get their existing corporate borrowers with total exposures of more than 50 Crores, to get registered with LEI System.
Thus, all the Companies, Partnership firms, trusts and other entities having total fund based and non-fund-based exposure of Rs. 50 Crores or more shall get registered under Legal Entity Identifier (LEI)
Legal Entity Identifier (LEI) can be obtained from Legal Entity Identifier India Limited (LEIIL) which has been recognized by the Reserve Bank as issuer of LEI under the Payment and Settlement Systems Act, 2007
Legal Entity Identifier (LEI) Registration Process:
- Login to www.ccilindia-lei.co.in
- Create Login Account and get the account activated.
- Login to your account and fill the details- Company Information, Direct Parent (Holding Company Information), Ultimate Parent details.
- Once details are submitted, make payment.
- Upload the documents as applicable.
- After successful payment and documents verification, LEI Number will be issued.
Documents required for Legal Entity Identifier (LEI) Registration:
- Certificate of Incorporation/ Registration Certificate
- Companies PAN Card
- Undertaking- Cum-Indemnity as per LEIL format
- Audited Financial Statements
- Board Resolution for authority as per LEIL format
- Power of Attorney (In case of delegation of authority)
Renewal of Legal Entity Identifier (LEI) Number:
Legal Entity Identifier (LEI) Number once issued will be valid for 1 year and thereafter needs to be renewed.
The process of renewal of Legal Entity Identifier (LEI) Number is very simple, and if there is no change in authorized person then only document you need to upload is latest audited financial statements.
In case of change in authorized person, fresh board resolution with that respect to be uploaded.
Legal Entity Identifier (LEI) Fees:
- For New Registration- Rs. 5,310 (Rs.4,500 + 18% GST)
- For Renewal- Rs. 3,540 (Rs.3,000 + 18% GST)
Tags :corporate law