The Legal Entity Identifier ("LEI") code was conceived as a crucial step to enhance the quality and accuracy of financial information systems for superior risk management article the Global Financial Crisis.
The legal entity identifier keyis a 20-character special identity code delegated to entities that are parties to monetary transactions. In regard to the applicability of LEI, the Reserve Bank of India (RBI) has issued numerous alarms from time to time to pay for things that might need to use for LEI code.
Because most of you have questions concerning the applicability and process for enrollment to get LEI code, we all believed it'll be appropriate to place them down in FAQ format.
Consequences for non-application?
Entities working in OTC derivative markets won't be qualified to transact with no legitimate LEI code. Borrowers who don't obtain LEI code won't be allowed renewal/enhancement of charge facilities. Entities working in non-derivative markets trade won't be in a position to handle transactions in financial markets following the expected date, either as an issuer or as an investor or as a seller/buyer. Transactions undertaken throughout the established stock exchanges are beyond the purview of their LEI requirement.
Validity of LEI code
The validity of LEI Code is for a duration of one year from the date of issuance or last renewal.