Legal Entity Identifier (LEI) Registration and Status in India By CS Anjul Mehta


Know the Concept of The Legal Entity Identifier (LEI) in India issued by the Reserve Bank of India

What is an LEI?

The Legal Entity Identifier (LEI) initiative is designed to create a global reference data system that uniquely identifies every legal entity, in any jurisdiction, that is party to a financial transaction. More specifically, LEI is a unique 20 digit code that is assigned to a legal entity.

The scope of the RBI circular dated November 29, 2018

and

November 02, 2017

RBI Circular covers participants in non-derivative markets(Non-derivative financial instruments comprise investment in equity and debt securities, trade, and other receivables, cash and cash equivalents, loans and borrowing, and trade and other payables.)

And

Borrowers of banks in a phased manner to apply for an LEI.

Non-derivative markets include Government securities markets, money markets (markets for any instrument with a maturity of one year or less) and non-derivative forex markets (transactions that settle on or before the spot date) that is cash, tom and spot transactions.

Schedule

The schedule of large borrowings to obtain LEI is as follows:

· Phase 1: Total exposure to SCBs of 1000 Cr and above – March 31, 2018

· Phase 2: Total exposure to SCBs of 500 Cr and 1000 Cr– June 30, 2018

· Phase 3: Total exposure to SCBs of 100 Cr and 500 Cr – March 31, 2019

· Phase 4: Total exposure to SCBs of 100 Cr and 50 Cr – Dec 31, 2019

The schedule of Non-derivative markets to obtain LEI is as follows:

· Phase 1: Net Worth of Entities above Rs.10000 million – April 30, 2019.

· Phase 2: Net Worth of Entities between Rs.2000 million and Rs 10000 million– August 31, 2019

· Phase 3: Net Worth of Entities up to Rs.2000 million– March 31, 2020

For Large Borrowings Mandate

The credit exposure comprises of all types of fund and non-fund based limits with all banks (which includes but not limited to loans, cash credit facility, Bank Guarantee, letter of credit, Commercial Paper/Corporate Bonds outstanding, forex/derivatives exposure limits). Exposure includes credit exposure (fund based and non-fund based credit limit) and investment exposure (including underwriting and similar commitments).

The sanctioned limits, or outstanding, whichever are higher, shall be reckoned for arriving at the exposure limit.

Information to LEIL

On the company’s letterhead along with the hard copy of documents or via email to lei@ccilindia.co.in

 

 

Amount
(in Rs. Crores)

 

Current Credit Exposure (Fund based and Non-fund based)

Total:

We fall in Phase “1/2/3/4” as per RBI circular. (Pl. tick whichever is applicable)

 

 

Any other Comment(If any)

Documents to be Submitted

The legal entity will have to submit the documents which include but are not limited to:

·       Certificate of Incorporation/Registration Certificate

·       PAN Card proof

·       Undertaking –cum-Indemnity as per the format specified by LEIL

·       Audited Financial Statements

·       Board Resolution as per the format specified by LEIL

·       Power of Attorney as per the format specified by LEIL in case of any further delegation by officials mentioned in Board Resolution.

·       Auditor’s Certificate as per the format specified by LEIL in case of holding the company and ultimate parent.

Data on parent entities (Direct and Ultimate Parent) is a part of the information that must be provided in order for LEI to be issued or renewed that have or acquire LEI.

Direct/Ultimate Parent who do not have LEI or the parent does not consent to have an LEI may choose exception reporting – No LEI and provide other details such as Legal Name, Legal Address etc of the Parent.

Name of Registration Authority

Ministry of Corporate Affairs.

All types of Companies permitted under the Companies Act including NBFCs, AMCs and Insurance Companies

Validity Period of an LEI

An LEI is valid for one year from the date of issuance/last renewal date.

Renewal Date for my existing LEI

It shall be the duty of the entity to apply for renewal of LEI before the expiry of the validity of the LEI. The status of your LEI will change to ‘LAPSED’ on the next renewal date.

The user shall click on “View Details” which provide the “LEI Next Renewal Date”.

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