Legal Entity Identifier

The Legal Entity Identifier (LEI) Code is a key measure to improve the financial data systems for risk management. Lei Code is designed to identify and link parties to financial transactions. The goal is to improve compliance with regulatory reporting requirements. The Global LEI System (GLEIS) was set up to address the global financial crisis. The code is a 20-digit unique code to identify parties to financial transactions and consists of a long alphanumeric code based on the ISO 17442 standard. According to the Reserve Bank of India (RBI), an LEI code is required for all payment transactions (NEFT, RTGS or such other mode) of value INR 50 crore and above. These can be foreign exchange payments, money market payments, vendor payments, intercompany payments, or any other type of payment. An entity seeking an LEI code will be required to register as a user on the LEI website i.e. www.ccilindia-lei.co.in. The LEI is valid for one year from the date of issuance, or the last renewal date. LEI is issued within 3 – 5 working days. Any person who acts in their natural capacity is not required to obtain the LEI code, the compliance applies only to corporates. The LEI retains its validity even if a company moves into another country.