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.
The LEI is a unique code of 20 characters and serves as a global identifier for legal entities involved in financial transactions. It aims to establish a comprehensive reference data system that uniquely identifies every legal entity participating in financial transactions.
The objective of the LEI system is to enhance transparency in financial markets and mitigate systemic risk by creating a standardized and comprehensive database of legal entity information.
LEI mandate by RBI and SEBI
Under the mandate by the Reserve Bank of India (RBI) and SEBI, non-individual borrowers with an aggregate exposure above Rs 25 crore are required to obtain the LEI code. Issuers with outstanding listed non-convertible securities, securitized debt instruments, and security receipts must obtain and report the LEI code to the central database of corporate bonds and depositories by 1 September. Additionally, issuers planning to list such securities after 1 September must provide their unique global identifier code to the central database during the allocation of the International Securities Identification Number (ISIN).
How to get an LEI?
In India, there are numerous options available for Legal Entity Identifier (LEI) service providers. LEI Register India has emerged as a leading provider in the market, distinguishing itself through competitive pricing and efficient service. Our primary focus is ensuring customer satisfaction while delivering quick and reliable LEI registration solutions.
SEBI has released a circular to enforce the LEI system, effective immediately. However, the requirement of LEI for issuers proposing to list or having outstanding municipal debt securities will be announced by SEBI at a later date. The circular obligates issuers to obtain and report their LEI code within the specified deadlines and ensure compliance with the requirements of the LEI system.