Companies with LEI code

What is an LEI?

An LEI code is a 20-character alphanumeric code that uniquely identifies separate legal entities involved in financial transactions. Standardized within ISO 17442, the LEI is linked to important information about an entity and thus allows it to be uniquely and properly identified.

Why is an LEI Important?

• Global standardization: LEIs are globally standardized and act as an important identifier of cross-border (overseas) transactions.
• Rules compliance: The usage of LEIs is mandated by regulators, including the Insurance Regulatory and Development Authority (IRDA), Securities and Exchange Board of India (SEBI), and Reserve Bank of India (RBI) require the use of LEIs to remain in line with international standards.
• Improved transparency: LEIs render the business landscape more secure by providing effective and reliable verification of counterparties.
• Operational efficiency: Simplified reporting procedures and less manual reconciliation of entity identities required.

LEI Registration in India

Indian organizations dealing with financial transactions regulated by the RBI and SEBI are mandated to have an LEI. These include:

• Banks and financial institutions: Derivatives market deals.
• Companies listed on stock exchanges: Trading in securities and other financial instruments.
• Mutual funds: Deals in the securities market.
• Large corporates: Organizations with total fund-based and non-fund-based exposures exceeding set thresholds.

LEI Code Format

An LEI code will be formatted in the following manner:

• Characters 1–4: Local Operating Unit (LOU) ID.
• Characters 5–18: Entity identifier.
• Characters 19–20: Verification digits.

For instance, the LEI of an entity can be: 5493-0084UKLVMY22DS16.

Obtaining an LEI

Organisations can acquire an LEI through:

• Choosing an Accredited LEI Issuer: Choose a Local Operating Unit (LOU) that is accredited by the Global Legal Entity Identifier Foundation (GLEIF).
• Presenting Required Information: Present documents and information concerning the entity as required.
• Make the Registration Payment: The fees are paid depending on the LOU and how long the registration lasts.
• Receive the LEI: Upon checking, the LEI is presented and used in financial deals.

LEI Renewal

LEIs are valid for one year from the date of registration. They must be renewed annually to remain eligible to participate in regulated financial transactions. Any accredited LOU can renew them, and the code does not change even if it is transferred between two different LOUs.