Legal Entity Identifier (LEI)- 

The worldwide financial crisis of 2007-08 gave rise to the need for transparency in financial transactions. These events eventually led to the need for the establishment of a system such as the Legal Entity Identifier system.

Legal Entity Identifier is a unique 20 character long alphanumeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). This was created as a vital measure to improve the quality and accuracy of financial data systems for improved risk management. It acts as a global directory that provides the much-needed transparency for the benefit of all involved, providing details of the ownership structure and associated details of the parties involved.

Reserve Bank of India (RBI) has made mandatory to include remitter and beneficiary LEI information for single payment transactions of Rs. 50 crore and above undertaken by entities (non-individuals).

Formation of LEI code- 

A Small Company means The LEI code comprises of 20 characters and the following structure:

• paid up Characters 1-4 are unique to each LOU (Local Operating Unit) and are affixed by the ROC Secretariat.

• sales shall not exceed rupees forty crore.

• Characters 7-18 comprise a 12-character reference that is assigned by the LOU to a particular entity based on transparent and sound allocation policies.

• Characters 19-20 are two check digits under ISO 17442

Procedure to obtain LEI:

• A person must be appointed as the authorised person to carry out the process of obtaining the LEI Code. Only the authorised user has the permission to create an account, providing his official email id and proceeding to fill up the form available in the online portal https://www.ccilindia-lei.co.in/

• LEI registration form consists of 5 pages in total, including the payment gateway.

  1. Company Information Page: All the basic details of the company are entered on this page

  2. Holding Company Page (Direct Parent Information Page): Details of the parent company are to be filled in here.

  3. Ultimate Parent Page: Where the company is a step-down subsidiary, the ultimate parent’s details are also to be provided.

  4. Upload Page: The necessary documents are uploaded on this page. The checklist for the documents and their specific formats necessary for submission are available under the “Downloads” tab on the online portal based on the legal structure of the entity. The required documents are - PAN card, Incorporation certificate, Power of Attorney, Audited financial statements, General board resolution or General power of attorneyv

  5. Payment Page: The payment for the form is to be made once it is complete.

• The payment can be done either online or with a demand draft. Once the payment is done online and received by the Legal Entity Identifier India Limited (LEIL), a reference number is generated. Along with the reference number, an email is also sent, detailing the list of documents to be submitted to the LEIL. If the demand draft option is selected, the reference number and email are generated immediately.

• The applicant entity have to upload all the necessary documents mentioned in the email.

• The LEI code will be sent to the registered email of the entity on the successful submission and verification of the form and the related documents.

Renewal of the LEI Code- 

LEI Code is generally valid for one year. In order to continue to use the code, it must be renewed through an application form. This can be done on the same online portal.

Read the RBI clarifications at: LEI

 

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