Legal Entity Identifier Code

Legal Entity Identifier (LEI) Code is a global reference number that identifies every legal entity participating in a financial transaction. The RBI (Reserve Bank of India) has mandated the Legal Entity Identifier Code for all participants in the Over-the-Counter (OTC) derivatives markets. In this article, we look at the Legal Entity Identifier Code in detail.

Applicability for LEI code

The following entities eligible to apply for Legal Entity Identifier Code are Sole Proprietorships, Partnership Firms, Limited Liability Partnerships (LLP), Public Limited Companies, Private Limited Companies, Government Companies, One Person Company, Insurance Companies, Trusts, Housing Finance Companies, Non-Banking Finance Companies, Non-profit companies, Special Purpose Vehicles, Mutual Funds-Sub Scheme, Pension Fund Sub-Scheme, Alternative Investment Fund (AIF), AIF-Sub Scheme, Pension Fund, Nationalized Banks, Scheduled Urban Cooperative Bank, Payment Banks, RRBs and other banking companies.

Purpose of Code

Legal Entity Identifier (LEI) code serves for the following purpose:

To provide consistent and accurate identification of legal entities which are parties to a financial transaction.
To trace financial exposure taken by the corporate.
To support cost-effective compliance with regulatory reporting requirements.
To check credit rating, in case any new financial product is launched in the market to raise funds.

Time Limit

The entities without a Legal Entity Identifier (LEI) code would not be eligible to participate in the OTC derivatives markets after the specified date in the schedule:

Phase	Net Worth of Entities	Due Date
Phase I	Above Rs.10000 million	December 31, 2019
Phase II	between Rs.2000 million & Rs.10000 million	December 31, 2019
Phase III	till Rs.2000 million	March 31, 2020

Payment of Registration Fees??

The person applying for Legal Entity Identifier Code has to remit the fee to the LEIL as per the following fee structure: For New Registration: Rs.7,080 (inclusive of GST). For Renewal: Rs.4,130 (inclusive of GST), where renewal fees will not be applicable at the time of new registration. The payment can be made by either NEFT or Demand Draft payable at Mumbai. Also, the details of payment mode available at the official portal for your reference.

Documents Required

The following are the documents to be submitted by the legal entity.

Certificate of Incorporation or Registration Certificate
Copy of PAN Card
Undertaking - cum-Indemnity as per the format prescribed by LEIL
Audited Financial Statements
Board Resolution as per the format prescribed by LEIL
Power of Attorney as per the format prescribed by LEIL in case of any further delegation by officials mentioned in Board Resolution.
Auditor's Certificate as per the format prescribed by LEIL, in case of holding the company and ultimate parent.

Online Registration for Legal Entity Identifier Code

To register for Legal Entity Identifier, follow the procedure mentioned below: Step 1: The legal entity should register a new user on the official website of Legal Entity Identifier India Limited Step 2: The application to be submitted by a duly authorized person on creating an account using the option on the portal and fill in the required details. Step 3: Once created, a confirmation e-mail will be forwarded to the registered e-mail id to activate and verify the account. Step 4: The duly authorized may then click on the link provided in the e-mail to activate the account. Step 5: After successful login, on LEI service tab, the duly authorized can register and fill in necessary details. Step 6: After creating an account, the official will have to select 'Information' button and click on 'Legal Doc Download'. Step 7: Also, the list of documents for each legal form is available, and that can be download. Step 8: The authorized person will submit the online registration form and sends the physical documents as there is no option applicable to upload of documents on Legal Entity Identifier India Limited (LEIL) website. The documents need to be submitted to the address as mentioned below: Legal Entity Identifier India Limited (LEIL) CCIL Bhavan, 3rd Floor, S. K. Bole Road, Dadar (West), Mumbai - 400 028. Note: A duly authorized person to apply for Legal Entity Identifier Code are explained below:

Companies: For companies, is the one authorized by the Board Resolution,
Trust: For Trusts, is the one authorized by the Board of Trustees Resolution,
Societies: For Societies, is the one authorized by the Resolution of the Committee of Members,
Sole proprietorship: For sole proprietorship concerns, is the proprietor himself or a duly authorized person appointed through a power of attorney,
Partnership firms: For partnership firms and limited liability partnerships, is the partners themselves or an authorized person appointed through a power of attorney

Verification and Issue of LEI Number

All Legal Entity Identifier requests will be validated independently with the respective registration authorities like SEBI, NSDL, DICGC, MCA etc. Legal Entity Identifier India Limited will verify the documents received as well as the online form. Upon verification, if the submitted details are found correct, will issue Legal Entity Identifier number in 3 to 5 working days. A Legal Entity Identifier code is valid for one year from the date of issuance or last renewal date. For renewal after the expiry date, the entire record needs to be validated once again to ensure the accuracy of the information.