SEBI has introduced the Legal Entity Identifier (LEI) system
The Securities and Exchange Board of India (SEBI) has implemented the Legal Entity Identifier (LEI) system for entities that have listed or plan to list non-convertible securities, securitized debt instruments, and security receipts. Continue reading...
What is the purpose of an LEI in India?
The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables a clear and unique identification of legal entities participating in financial transactions worldwide.
Each LEI contains well-structured reference data categorized into 2 sections:
Level 1 data – ‘who is who’
Level 2 data – ‘who owns whom’
Legal Entity Identifiers in India
The LEI has been mandated in India since 2017. The Reserve Bank of India introduced the LEI in a phased manner for participants in over-the-counter (OTC) derivative, non-derivative markets, and large corporate borrowers.
Having an LEI is mandatory and will enormously increase trust in your partners’ eyes. Possessing an active LEI shows that your business follows regulatory requirements and confirms that the information about your business is legitimate and up-to-date.
Just like businesses use LEIs to verify each other, banks worldwide and in India use the code to confirm their customers’ identity and streamline the Know Your Customers (KYC) processes.
Why was the LEI introduced?
A Legal Entity Identifier number or code is required to ensure a more transparent financial market.
The G20 developed the Global LEI System (GLEIS) in 2011 in response to the 2008 global financial crisis. This was when the need for a more transparent financial system became evident.
After forming the G20 concept, the Financial Stability Board (FSB) appointed a new not-for-profit organization, The Global Legal Entity Identifier Foundation (GLEIF), to watch over it.
The foundation doesn’t issue LEI codes but leaves them to a network of public and private companies acting as Local Operating Units (LOUs). Furthermore, to obtain an LEI code, you’ll need to reach an LEI Registration Agent.
Why it’s important to renew LEIs in India?
Once you've missed the deadline, your LEI will be inactive, and the registration will default to "Lapsed." With a lapsed LEI, your trades can be blocked. You might face additional penalties and be unable to make transfers through your bank. Continue reading...
Why it’s important to fill in multiple contact details on your LEI application?
Since the Legal Entity Identifier (LEI) became mandatory in India, companies have assigned the responsibility of obtaining and renewing one to people in different roles. From this, a new challenge has emerged. Continue reading...
Why transfer existing LEI to LEI Register India?
ve many different Legal Entity Identifier (LEI) service providers to choose from. LEI Register India became a market leader by offering the best value prices and fast service, all whilst keeping customer satisfaction our highest priority. Continue reading...
GLEIF’s verifiable LEI issuer qualification program
GLEIF (the Global Legal Entity Identifier Foundation) has launched its new Verifiable LEI Issuer Qualification Program. This program is designed to help businesses everywhere establish trust with their partners and customers through the use of LEIs (Legal Entity Identifiers). The Verifiable LEI (vLEI) will play a critical role in this process by allowing businesses to automatically verify the identity of their partners and customers. Continue reading...
What are Child Entities and How do They Relate to Other Entities?
A child entity is a type of entity that is defined in relation to another, specific entity called the parent. Child entities can be thought of as subordinates or dependents of their parents. In some cases, child entities may have their own independent existence, but they cannot exist without their parents. In other cases, child entities are simply a subset of data that is stored alongside the parent entity. In this article, we will discuss the different types of relationships between entities and explain how child entities work within those relationships. Continue reading...
Do I need an LEI when selling shares?
A Legal Entity Identifier (LEI) is a unique code required by any legal entity that invests in financial instruments through a regulated exchange (this includes shares, bonds, collective investment schemes, derivatives, and more). When the legal entity executes a transaction, this identifier is used to identify it. Continue reading...
Business Transparency: How to create an environment of trust
What is transparency in business? Quite simply, you can define business transparency as the act of being open and honest with all stakeholders - employees, customers, suppliers, and the community at large. In this article, we will explore what transparency means for business leaders and how they can create an environment of trust within their organizations. Continue reading...
Anti Money Laundering (AML) in Banking: Everything You Need to Know
Money laundering is the process of disguising the origins of money that has been obtained illegally. Anti Money Laundering (AML) regulations are put in place to prevent banks and other financial institutions from being used to launder money. In this article, we will discuss AML in banking and how it affects financial institutions. We will also provide a detailed overview of the AML process and discuss some common AML compliance issues. Continue reading...
KYC in Banking: Why it’s important and how to comply
KYC, or Know Your Customer, sometimes Know Your Client is a critical process in the banking industry. KYC's purpose is to ensure that banks are doing business with legitimate customers and that they are complying with KYC bank regulations. The importance of KYC cannot be overstated - it helps protect both the customer and the bank from fraud and other illegal activities. In this article, we will discuss why KYC is so important and how you can comply with KYC bank regulations. Continue reading...
Corporate Structures Demystified: What you need to know
There are a variety of corporate structures that businesses can choose from, and it can be confusing to know which one is right for your company. In this article, we will demystify corporate structures and explain the different types that are available. We'll also look into the benefits and drawbacks of each type so that you can make an informed decision about which structure is best for your business. Continue reading...
News from RBI for Borrowers
This update concerns all Scheduled Commercial Banks (Excluding Regional Rural Banks), India Financial Institutions, Small Finance Banks, Local Area Banks, Primary (Urban) Co-operative Banks, and Non-Banking Financial Companies (including Housing Finance Companies). Continue reading...
What is a parent company and how does it work?
A parent company is a company that owns another company. Parent companies can be in charge of the day-to-day operations of their subsidiaries, or they can simply provide financial and managerial support. In most cases, parent companies are larger than their subsidiaries and have a more significant role in the overall operation of the business. Continue reading...
How long does it take to get an LEI?
The Legal Entity Identifier (LEI) registration process is simple but the data validation time is dependent on many variables. Once your LEI application has been submitted, your chosen LEI service provider will need to verify the information for quality control purposes. For this, a local company's registry is used. Continue reading...
RBI demands borrowers with total exposure of ₹5 crore and above to obtain LEI
The Reserve Bank of India (RBI) has come out with a timeline for non-individual borrowers who aggregate exposure of ₹5 crore and above from banks and financial institutions to obtain Legal Entity Identifier (LEI) codes. Continue reading...
What is beneficiary LEI?
The Legal Entity Identifier (LEI) is a 20-character alpha-numeric code used to uniquely identify parties to financial transactions on a global scale. It has been implemented to improve the quality and accuracy of financial data reporting systems for better risk management. An LEI number is mandatory for legal entities trading in the financial industry. A beneficiary LEI is therefore an LEI code of the legal entity that receives money or other benefits from a benefactor. Continue reading...
ISO 5009 – Identifying organizational roles
In 2022 the organization came out with a new standard ISO 5009: to recognize official organizational roles in a business entity with digital IDs, which can be used to authenticate the identity of authorized representatives for meeting the KYC and related regulatory requirements of business transactions. Continue reading...
ISO 17442 – Standard for LEI code structure
The International Organization for Standardization (ISO) is a global, independent, non-governmental standard development organization, composed of representatives from the national standards organizations of member countries. These standards are formulas for doing something- they can be about making products, managing processes, or delivering services - covering a huge range of activities. Continue reading...
ESRB discusses the future of LEI
The European Systemic Risk Board (ESRB) published an occasional paper to talk about the importance of the Legal Entity Identifier (LEI). The ESRBs role in the European Union (EU) is to avert and mitigate risks within the financial system. The paper views the opportunities presented by LEI to enable faster, cheaper, and more secure transactions not just within financial markets but for all legal entities globally. Continue reading...
Legal Entity Identifier for Cross-border Transactions
RBI published on the 10th of December 2021, that it's now mandatory for entities to register for a Legal Entity Identifier (LEI) code for cross-border transactions. The last date to register for the LEI code has been set to the 1st of October 2022. Continue reading...
Legal Entity Identifier (LEI) vs Permanent Account Number (PAN)
The Legal Entity Identifier (LEI) is a standard identifier that provides verified data on legal entities and is registered on a centralized system, the Global LEI System. The Tax Identification Number (TIN) in India is officially called Permanent Account Number (PAN). Every individual or entity who has a taxable income in India must obtain a PAN. Continue reading...
Is LEI and CIN the same?
LEI and CIN are not the same. Corporate Identity Number (CIN) is a number assigned to an entity by a local register. Legal Entity Identifier (LEI) needs to be obtained if you wish to participate in the global financial markets. The Global LegalEntity Identifier System (GLEIS) provides a uniform method of unique identification on an international scale. The database is free and accessible for anyone! Continue reading...
Who is an LOU in the LEI dimension?
A Local Operating Unit (LOU) is an authorized organization that issues LEI codes. You'll find a list of official LOUs (or LEI Issuers) on the GLEIF website. LOU-s supply registration, renewal, and other services related to the LEI code. Continue reading...
LEIL vs LEI Register
The Global LEI System is designed to encourage competition between LEI issuers and registrators for the benefit of legal entities seeking to obtain an LEI. Coming up with the price of issuing and maintaining an LEI has therefore been left to the organizations themselves. This explains why some companies charge double the price of their competitors. Continue reading...
GMEI Utility vs LEI Register
The Global LEI System is designed to encourage competition between LEI issuers and registrators for the benefit of legal entities seeking to obtain an LEI. Coming up with the price of issuing and maintaining an LEI has therefore been left to the organizations themselves. This explains why some companies charge double the price of their competitors. Continue reading...
Lapsed LEI – Why should you keep your LEI active?
Your Legal Entity Identifier (LEI) must be renewed annually. Failure to renew the LEI will change it from an ACTIVE status into a LAPSED status in the Global LEI System index. A lapsed LEI can cause major inconveniences, as your trades will be blocked and as a financial institution, you even face a risk of non-compliance fines. Continue reading...
Who is an LEI Registration Agent?
An LEI Registration Agent's role is to help legal entities, who are looking to obtain an LEI code. The concept of Registration Agents was introduced by GLEIF to further streamline the issuance of LEIs. A Registration Agent's success is solely determined by their ability to offer competitive prices and by simplifying the LEI registration or renewal process for their clients. Continue reading...
Are LEIs public?
The Global LEI System was developed for a more transparent global financial market. A company's LEI will be public and contain data about the company's registered and trading names; company type; registered address; registration number; parent company information; child company information. You'll be able to access this public database, free of charge through LEI Search. Continue reading...
What is LEI transfer?
LEI transfer is the process of transferring your LEI code from one service provider to another. In the process of changing to a different service provider, your LEI code will not change. It is a back-end process that is not visible to end customers. LEIs can be transferred to a better, cheaper service provider at any time. Continue reading...
Can an individual have an LEI?
As the name suggests, Legal Entity Identifier (LEI) is meant for legal entities, not individuals. To date, an individual person or a group of people cannot register for an LEI. Whereas having an LEI is a requirement for legal entities worldwide. Continue reading...
Who needs an LEI number?
Who needs an LEI number? LEI is needed by legal entities who take part in financial transactions and who wish to trade in financial markets, such as buying stocks, bonds, or other securities. There are also many regulations (dependant on jurisdictions) that require obtaining an LEI. Continue reading...
Do LEI numbers need to be renewed?
The Global LEI System was created for a more transparent and accurate identification of legal entities that operate within today’s financial system. In order to keep the data relevant and up to date, the LEI numbers need to be renewed annually. Once your deadline passes, the registration defaults to "lapsed" and you won't be able to make any trades until the number has been renewed. Continue reading...
Why is an LEI number required?
A Legal Entity Identifier number or code is required to ensure a more transparent financial market. The initiative was created after the 2008 global financial crisis, with hopes to avoid any future global economic shocks of that severity. The LEI code is now essential for legal entities that operate within today's financial system. A company's LEI record will contain public information, that is accessible through a global database. Continue reading...
How much does an LEI number cost?
The Global LEI System (GLEIS) has been set up in a way where LEI cost can differ among various service providers. Obtaining an LEI number can cost you anywhere between $65 to $200, depending on who you're registering with. Since the number needs to be updated yearly - the costs will start to add up. For this reason, we encourage you to pay close attention to the price and take it as the primary factor when registering an LEI code. Continue reading...
LEI Lookup – Fully dedicated LEI search website
The LEI database, which is managed by the Global Legal Entity Identifier Foundation (GLEIF), is completely transparent and accessible to everyone - regulators, businesses and other entities - regardless if they possess an LEI code themselves. This guarantees transparency between the parties involved in any financial transaction. As the LEI codes are renewed each year, the database can be relied upon to display only up to date information. Continue reading...
LEI RBI
The Reserve Bank of India (RBI) has decided to inaugurate the Legal Entity Identifier (LEI) system for all payment transactions of value ₹50 crore and above handled by entities (non-individual) using the Reserve Bank-run Centralised Payment Systems with effect from April 1. Continue reading...
ISIN to LEI mapping
Within the world of hundreds of thousands companies, there are two primary identifiers used in finance. The first one being The International Securities Identification Number, otherwise known as ISIN, second The Legal Entity Identifier known as an LEI. These identifiers have a lot in common, they're both used to increase transparency and made up of alphanumeric digits with check numbers. Continue reading...
GLEIS | Global LEI System
The Global LEI System (GLEIS) was born out of the 2008 Global Financial Crisis (GFC), when it became apparent that there was a greater need for transparency and security. GLEIS ensures straight forward, unambiguous identification of participants in financial transactions. Continue reading...
MiFID regulation | MiFID II LEI
MiFID is the Markets in Financial Instruments Directive. Applicable across the European Union since November 2007. Being a cornerstone of the European Union's regulation of financial markets looking to improve their competitiveness by generating a single market for investment services and activities, and to guarantee a high degree of systematised protection for investors in financial instruments. Continue reading...
vLEI
vLEI will give legal entities, government organisations and organisations worldwide the ability to use non-repudiable identification data pertaining to their legal status, ownership structure and authorised representatives in their business activities. Continue reading...
GLEIF | Global Legal Entity Identifier Foundation
GLEIF is uniquely positioned in the entity identification market, agnostic to any particular political and/or commercial interests. The foundations' overhaul is to ensure the operational integrity of the Global LEI System. GLEIF is the one behind continuous improvement of the information available within, and the quality of, the LEI data pool. Continue reading...
Company Autocomplete by LEI Register
The newest addition for optimising user experience being an autocomplete plugin. “Company Autocomplete by LEI Register” is open source software, by enabling this plugin it'll add an autocomplete function to the company name field in your standard Woocommerce checkout form. Continue reading...
Open LEI
Before the widespread adoption of the open LEI system, there were many inefficient, predominantly proprietary identifiers that, more often than not, provided false or outdated information. These shortcomings were a severe problem, particularly in financial markets, where the regulators, banks or other market participants were unable to access valid information about their counterparties. Continue reading...
European Market Infrastructure Regulation | EMIR
European Market Infrastructure Regulation (EMIR) is a European Union regulation for over-the-counter (OTC) derivatives, central counterparties as well as trade repositories first introduced by the EU in 2012 in fulfilment of their commitment at the G20 summit, an international forum for the governments and central bank governors of the European Union and 19 other countries promoting international financial stability. Continue reading...
What is an LEI database?
LEI database has greatly simplified dealing with international clients as there's no need for a time-consuming background check where previously the only information being relied upon was the company's own internet presence and local registry listings; often leading to hours of translating and web browsing with little confidence of the authenticity. Continue reading...
India LEI regulations
It is now mandatory that the LEI system be adopted for all payment transactions of value ₹50 crore and above, handled by entities using the Reserve Bank's Centralised Payment Systems viz. Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). Continue reading...
Documents required for LEI registration – LEI requirement explained
If you are intending to make transactions within the global financial system, there is a strong possibility that you will need to have an LEI (Legal Entity Identifier). This is mandated in many countries around the world, including India, and without an LEI, certain financial institutions may refuse to trade with you. Continue reading...
LEI Full Form in Banking
The full form of LEI is a Legal Entity Identifier. This is a 20-digit unique code that is issued to any company wanting to conduct financial transactions and trade. The LEI code contains information about the organization's ownership and structure and is meant to enhance transparency in the financial marketplace. Continue reading...
No LEI Login Required with LEI Register
Registering an LEI with LEI Register is fast and easy, as you don't need to create an account with us. With no LEI login required, you can do what you need to do, without having to re-enter your login details every time you use our service. Continue reading...
How to Download LEI Certificate
As of July 2020, LEI Register has introduced a new option for customers in India- The LEI Register’s Official LEI Certificate. It is available as a PDF file as well as A4 paper document (sent as a mail, delivered within 7 working days). Continue reading...
New Legal Entity Identifier (LEI) Regulations for Insurers and Loaners
Reserve Bank of India has announced an extension of Phase III for money markets deadline from March 31 2020 to September 30 2020 Continue reading...
Legal Entity Identifier India: Extension of March 31 2020 deadline
Reserve Bank of India has announced an extension of Phase III for money markets deadline from March 31 2020 to September 30 2020 Continue reading...
Legal Entity Identifiers in Cryptocurrency
As cryptocurrency and the blockchain continues to get more press and more market spending, there are questions to answer about identity verification. Could Legal Entity Identifiers be the answer to some of those questions? Continue reading...
LEI Entity Search for India
You can discover a lot of useful information with LEI search tool. You can find out the legal name of the entity in question, the status of the LEI (whether it is active, inactive), and you can, of course, also discover the string of characters which represent the LEI itself. On top of that, you can discover the registration status of each LEI, so you can see whether it has been issued or not. Continue reading...
Legal Entity Identifiers in KYC
KYC is a process of understanding who you do business with and assessing their suitability or risk to your organisation. Banks, insurers, creditors and more are increasingly demanding (thanks to the global drive in KYC regulation) that customers provide due diligence information to ensure they are who they say they are. Continue reading...
Digital Identity Predictions for 2020
A national identity scheme tell us a lot about the state that creates it. Schemes come in many forms with the government taking many roles from identity issuer to regulator. What does 2020 have in store for digital identity? Here’s some of our predictions. Continue reading...
The Future of Cybersecurity – Deloitte
Deloitte publishes its “Future of Cyber Survey” after surveying over 500 C-suite executives with responsibility of cybersecurity in organisations that make at least $500 million in annual revenue. We will review and summarise some of the findings of the survey in this blog. Continue reading...
How To Buy Shares in India for Beginners?
Investing in shares is highly popular investment arena for Indian investors and can be extremely fortuitous endeavour when done properly. This article answers the question on how to buy shares in India for beginners and also covers the topic about different types of shares in India. Continue reading...
Legal Entity Identifiers in Digital Certificates
Digital certificates are hugely important in encrypting the internet. Whether it’s for encrypting a website and adding the ‘S’ to HTTPS or it’s encrypting and signing a digital document like a PDF, digital certificates are everywhere. Up until now, they have solved some great security challenges on the internet by encrypting networks and communication channels. However, as we know, encryption is not always enough. Continue reading...
Broad Adoption of LEIs Could Save The Global Banking Sector US $2-4 Billion
The banking industry could save between US $2-4 billion in client onboarding and if more widely adopted they could help the banking industry save between 5-10% globally. This represents a total figure of around $40 billion USD. Continue reading...
Legal Entity Identifiers for Government Entities
The LEI ROC is looking to create a new item called “general government entities” which could be filled out separately and help to clarify, if there is no parent entity, at least what industry these entities belong to. Continue reading...
The European Market Infrastructure Regulation (EMIR) and Legal Entity Identifiers (LEIs)
The EMIR regulation has mandated EU trade repositories, starting on November the 1st 2017, to reject trade reports without a Legal Entity Identifier or LEI, regardless of whether the reports pertain to EU or non-EU market participants. Continue reading...
The FCA Will Take Pragmatic Approach to Supervising Reporting on Brexit Day
The FCA is aware that leaving the EU on a working week may pose some additional challenges and suggests that firms should take reasonable steps to stay compliant with MiFID and EMIR trade reporting requirements post-exit. Continue reading...
Adoption of LEI in Payment Messages by the Payments Market Practice Group (PMPG)
In September, the Payments Market Practice Group or PMPG was set up by SWIFT to bring together payment industry practitioners and define market best practice. They published a paper on the Adoption of LEI in September 2019 and we have decided to bring a short summary of the main points in this post. Continue reading...
RegTech London – Event Summary
RegTech took place on 3rd October 2019 in St Paul’s London. The event was aimed at exploring how the financial services industry can leverage technology to innovate, cut costs and support regulatory change. St Paul’s saw a culmination of start-ups, technology providers, financial institutions, regulators and practitioners for a day of networking, seminars and collaboration. Continue reading...
RBI regulations for mandating Legal Entity Identifier in India (2019 extensions update)
RBI (Reserve Bank of India) has mandated the use of LEI for large corporate borrowers and use of LEI in non-derivative markets. RBI hopes to achieve better quality and accuracy for monitoring the health of the financial system. It also hopes to achieve better managed risk in the markets. Continue reading...
Cybersecurity in a Nutshell
Modern businesses run on data. Unfortunately, our data and networks are more vulnerable than ever. We cannot help but hear the daily news of cyber attacks and the massive problems they create. Even a minor breach creates a significant financial hit for an organization, not to mention the downtime and reputational damage. A major breach can spell disaster. Continue reading...
What is LEI-Search?
LEI-search.info offers the most important information when it comes to Legal Entity Identifier providers. Potential customers can easily find the most suitable LEI code provider based on the LEI code’s price, LEI code’s average processing time, payment methods or the website language. The Legal Entity Identifier’s table is sortable by registration price, renewal price or by the average processing time. Continue reading...
How to get an LEI in India?
Registering a Legal Entity Identifier (LEI) is a simple process. It comes down to picking out a suitable service provider and filling out an application form. From there the service provider will validate the data you provided and get back to you with an LEI number/code. Continue reading...
LEI Register and RapidLEI Announce Official Partnership
London, UK and Tallinn, Estonia. January 10, 2019 - LEI Register, a leader in the provision and management of Legal Entity Identifiers (LEIs), and RapidLEI, a fully accredited LEI issuer specialising in the automation of the LEI issuance process, today announced a partnership. LEI Register will offer LEIs issued by RapidLEI, to make the registration of LEIs faster and more accurate for their global customers. Continue reading...