Introduction and purpose of legal entity identifier
The Legal Entity
Identifier (LEI) code is conceived as a key measure to improve the quality and
accuracy of financial data systems for better risk management post the Global Financial
Crisis.
The LEI is
designed to enable the identification and linking of parties to financial
transactions to manage counterparty risk. Its goal is to help improve the
measuring and monitoring of systemic risk and support more cost-effective compliance
with regulatory reporting requirements.
Regulatory authority of LEI
The Global LEI
System (GLEIS) has been set up by regulatory authorities [including G20 and the
Financial Stability Board (FSB)] to address the global financial crisis. The
online portals of the Financial Stability Board (FSB), Regulatory Oversight
Committee and Global Legal Entity Identifier Foundation provide general
information on the status of the global LEI system.
Why is Legal Entity Identifier required for organization?
An 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 found on the same online
portal; the only difference this time around is to select the option “Modify
and Renewal” and not the “Register” option. Again, any changes to this part
will also need the authorized person to do so. In the form, once the LEI Code
is entered in, all the details appear automatically. Any modifications to be
made shall be made. The “LEI Renewal” checkbox has to be checked right and then
the same process of form completion, payment and document submission is
followed. On successful submission of all the above, the LEI Code is renewed,
and the confirmation of the same is received.
How does one obtain an LEI?
Document List: Log
on the online portal https://www.ccilindia-lei.co.in/ and access the
“Downloads” tab. The checklist for the documents and their specific formats
necessary for submission are available here based on the legal structure of the
entity.
Self-registration on the
online portal: A person must be
appointed as the authorised person to look over and carry out the process of
obtaining the LEI Code. A person may be appointed as an authorised person by
way of a resolution, power of attorney or voluntarily, as the case may be. It
is only this authorised user that has the permission to create an account,
providing his official email id and proceeding to fill up the online form.
Authorised persons include:-
- Primary/Main
user who submits the online application form. – Authorised User
- Name and
email id of the authorised officials named in the online form.
- Secondary User – Name and email id of the secondary authorised officials named in the online form.
· Submission
of the documents: The applicant
entity will have to upload all the necessary documents mentioned in the email.
The total size of the uploaded documents should be 40MB. If the upload is
unsuccessful, then the documents may be couriered to the following address:-
· Verification process: Once the documents
are uploaded or sent physically, they will be verified by the LEIL along with
the application form. If necessary, the LEIL may ask for additional documents
as well. The applicant entity may also be directed to make changes in the
application form online by the LEIL.
· Issue
of LEI Code: The LEI code will
be issued on the successful submission and verification of the form and the
related documents. The LEI code will be sent in an email to the entity, and
this code must be provided to the banks
