- March 3, 2020
- Posted by: IBA LLP
- Category: Legal & Regulatory, Updates
Legal Entity Identifier Code
Over the course of last two years, the Reserve Bank of India (RBI) vide various circulars has issued regulatory directives to introduce the Legal Entity Identifier (LEI) code as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis. The concept of LEI is prevalent in many countries and is being mandated all over the world in a phased manner for ease of financial transactions domestically and internationally.
The Legal Entity Identifier (LEI) is a 20-digit alpha numeric code based on standard developed by the International Organization for Standardization (ISO), to identify parties to financial transactions worldwide. The LEI is assigned on application from the legal entity after due validation of data. Each LEI contains information about an entity’s ownership structure. LEI has been created to enhance transparency in the global marketplace. RBI has authorized Legal Entity Identifier India Limited (LEIL) to issue the LEI to various participants. Readmore..