LEI full form in Banking
If you’re a corporate borrower or intend to make any kind of financial transaction in forex, on the credit derivative market, or any similar type of financial transaction, you will need an LEI code. You may have heard about this already, but we will explain it in detail if you’re unsure about what it means and don’t understand the LEI full form in banking.
What is the complete form of LEI?
The complete 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 or borrow money as a corporate borrower in India. The LEI code contains information about the organization’s ownership and structure, enhancing transparency in the financial marketplace.
The LEI code structure
The LEI is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO).
While initially confusing, the digits within the code are there for a reason and are structured with the following information.
- The official name of the legal entity
- The registered headquarters address of the legal entity
- The country of legal formation
- The date of the first LEI assignment
- The date of the last update of the LEI
- The date of expiry, if applicable
The LEI complete form:
- Characters 1-4 of the LEI are the prefixes used to identify the Local Operating Unit (LOU) that issued the LEI code.
- Characters 5-6 are two reserved characters set to zero.
- Characters 7-18 are the entity-specific part of the code generated by the LOU.
- Characters 19-20 are the two check digits described in the ISO 17442 standards.
You don’t necessarily need to understand every aspect of the LEI code. However, you do need to register for one if you intend to make transactions in the global financial system and capital markets or if you are a corporate borrower.
Why is there a need for a Legal Entity Identifier?
In this age of cybercrime, steps must be taken to increase transparency in the financial market and improve customer confidence. It has been very easy for anybody to set up a financial service without disclosing their relationship with other companies, but this can be fraught with problems, especially around the area of trust. Doing business can be tricky when you don’t know who you’re dealing with due to a lack of identification procedures. The pathway opens to fraud and market abuse, and confusion can arise.
In short, the LEI identifies a legal entity, giving you credibility when making financial transactions within the global market. Without an LEI, most companies will refuse to trade with you.
How to obtain a Legal Entity Identifier?
You can order an LEI from any Local Operating Unit or a Registration Agent like us. We are here to help companies in India efficiently apply for an LEI code.
The process begins on our LEI registration page, where you can apply for your LEI. Simply complete the LEI form, provide the requested documents, make your payment, and wait while your application is sent for data validation. In 90% of cases, you will receive your LEI within 3-4 hours.
Get in touch
We pride ourselves on the services we offer our customers, so do not hesitate to contact us. Call, email, or use our contact form. All of our contact details can be found here.
We are here to support you through all aspects of the registration process, and we can answer any questions you might have about LEI full form in banking. For other information, please browse our website, including our blog and FAQ pages, which provide much information.
As the fastest and lowest-cost LEI agent in India, we have served many happy customers, and we hope you will benefit from the service we can provide.
