LEI Registration is a 20-symbol code essential for identifying entities in the global financial system. Legal entities involved in securities trading, as per MiFID II and the Reserve Bank of India (RBI), must have an LEI Registration

Companies operating in jurisdictions requiring LEI Registration must obtain one to participate in the financial market. The RBI mandates LEI Registration in India for large corporate borrowers and entities in specific financial markets.

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Why LEI Registration Required?

LEI Registration required to avoid the financial crisis to enhance transparency in financial data systems. LEI Code Registration, unique 20-symbol identifiers, facilitate the identification of counterparties in financial transactions. The issuance of this LEI Code Registration is overseen by GLEIF, the Global Legal Entity Identifier Foundation. An LEI, or Legal Entity Identifier Registration, is a one-time, unique code assigned to a company, valid for 1, 3, or 5 years based on your selection. To continue its validity, the LEI Code Registration requires extension through a renewal application for the subsequent year.

Who Needs an LEI Number in India?

Answer to “Who Needs LEI Registration” is very simple, any legal entity engaging in financial transactions requires an LEI Registration. Across various jurisdictions, approximately 100 regulations mandate or request the use of LEI Code Registration. This includes over 60 different acts in the US and Europe alone.

Application of LEI according to EU regulations, specifically under EMIR and MiFID II/MiFIR.

Several European Union regulations and directives already mandate the use of LEIs. Notably:

The European Markets Infrastructure Regulation (EMIR) requires EU trade repositories to reject trade reports lacking an LEI, effective from November 1, 2017, irrespective of the market participants’ EU or non-EU status.
MiFID II/MiFIR, in force since January 3, 2018, prohibits market participants from trading with in-scope investment firms without an LEI. Investment firms must obtain an LEI from clients before providing services triggering a transaction reporting obligation.

Since January 3, 2018, all legal entities engaging in transactions involving securities or derivatives in European financial markets, such as stocks, bonds, ETFs, FX forwards, swaps, interest rate swaps, must register for an LEI. It’s crucial to note that only legal entities are eligible to apply for an LEI, and it is necessary only if they intend to transact in financial instruments.

Advantages of LEI Registration in India

Legal Entity Identifier Registration (LEIs) are distinct 20-character codes designated to legal entities, offering a universally acknowledged method for identifying businesses and organizations.

The advantages of possessing an LEI are manifold, encompassing:

An LEI furnishes a standardized and easily accessible way to identify and verify the identity of a legal entity. This, in turn, can boost the entity’s credibility and transparency in the eyes of regulators, customers, and other stakeholders.
An LEI serves as a globally recognized identifier, streamlining cross-border transactions and diminishing administrative burdens, thereby facilitating global business operations.
Many financial markets and regulatory bodies now mandate LEIs for identifying and tracking beneficiaries involved in financial transactions. Holding an LEI can expand access to these markets and bolster the ability to engage in financial transactions.
With over 116 mandates globally necessitating the inclusion of an LEI, covering Anti-Money Laundering (AML), Know Your Customer (KYC), and securities laws, ensuring compliance is crucial. This safeguards against unnecessary interruptions to business or potential trade restrictions.

LEI Registration Applicability

Starting January 3, 2018, the use of LEI Registration became mandatory for trading entities. The implementation of the revised Markets in Financial Instruments Directive (MiFID II) and its accompanying regulation (MiFIR) by the European Union (EU) on this date impacts trading venues, investment firms, and their intermediaries.

Basic LEI Registration Requirement are simple, if traders are engaging in buying or selling securities, the investment service provider or bank must ensure that they possess an active LEI Code Registration. While having an active LEI is not compulsory for those simply holding securities, it is highly advisable. The absence of an active LEI or its expiration could lead to unwelcome surprises when deciding to sell securities at a later date.

Documents Required for LEI Registration in India

Type of Entity	Documents Required
Private Limited/LLP/Limited	1.PAN of Entity 2.Certificate of Incorporation/ GST Certificate/ IEC Certificate
Proprietorship	1.PAN of Proprietor 2.Udyam (MSME) / GST Certificate/ IEC Certificate
NGO, Society, Foundation	1.PAN of Entity 2.Niti Aayog Certificate (NGO Darpan)
Partnership	1.PAN of Firm 2.Udyam (MSME) / GST Certificate/ IEC Certificate / Partnership Deed
Bank	1.PAN of Bank 2.GST Certificate/ Board resolution/ Registration Certificate

LEI Registration Process

LEI Registration Process in India can be done from the Local Operating Unit (LOU) or an LEI Registration Agent. Legal entities are required to register their LEI using the service provider, whether it’s the LOU, Registration Agent.

What is LEI Number Search?

LEI Number Search unveils the details stored in its corresponding Legal Entity Identifier. LEI No Search process serves to verify the legitimacy of an LEI number registration and confirm the currency of information linked to a specific entity. It’s crucial to recognize that the identifier is a 20-character code, a standard set by ISO 17442. This standardization guarantees a distinct and unambiguous identification of participating entities in financial transactions whenever an LEI codes search is conducted.

One can find LEI Number from official website of GLEIF, the Global Legal Entity Identifier Foundation by using below mentioned link –

https://search.gleif.org/#/search/

LEI Certificate Download

The link to Download LEI Certificate is through LEI Registration official Website – https://www.ccilindia-lei.co.in/USR_LEI_DOWNLOAD_CERTIFICATE.aspx

Renewal of LEI Registration

The renewal and verification of data stand out as crucial advantages of the Legal Entity Number, ensuring the maintenance of reliable and high-quality data. The reliability of this data enables firms to mitigate counterparty risk and enhance operational efficiencies.

Consequently, the renewal of LEIs holds significant importance. Failure to renew Legal Entity Identifier Registration (LEIs) in a timely manner results in their lapse. If an LEI’s status has lapsed in the GLEIF database, it not only impacts your corporate branding but also poses a potential obstacle to successfully executing transactions or reporting in the future.

The process of LEI renewal closely mirrors LEI No Registration and is essentially the same. Customers are required to complete the form, entering either the company name or the LEI number registration into the LEI renewal form. Subsequently, the company data is automatically populated into the relevant form fields. It is crucial to update any information that has changed since the initial LEI No Registration, such as the company’s phone number or address.

How can Our Company help you?

Our Company specializes in simplifying and expediting the LEI Registration process. We offer a wide range of services, including LEI Registration and renewal support.
Our experienced team is well-versed in LEI Registration matters. Contact us for efficient and hassle-free assistance with your registration needs, so your organization can focus on its essential financial works.

Who needs an LEI number in India?

Since January 3, 2018, legal entities are mandated to possess a Legal Entity Number if they engage in transactions within a trading venue (regulated market, multilateral trading facility, etc.) or outside a trading venue related to securities admitted to trading or traded on a trading venue. This requirement extends to securities with an underlying asset that is a security traded on a trading venue or an index or basket composed of securities traded on a trading venue.

What happens if a customer fails to provide an LEI?

If a legal entity customer neglects to furnish the necessary information, including an LEI, for reporting a security transaction, the investment service provider cannot fulfill its legal reporting obligation. Consequently, the service provider may decline to offer the service.

How long does it take for LEI Registration Process in India?

We typically complete Legal Entity Identifier Registration Process within 1–24 hours from the moment of payment for the application, provided the company promptly submits any required additional documents.

Can an individual apply for an LEI?

No, private individuals are not eligible to obtain an LEI. Legal entities, including branch offices or operating divisions that are not distinct legal entities, are expected to use the LEI of their parent organization.

How long does it take to renew an LEI?

The renewal of an LEI is a relatively swift process on its own. However, when it involves changing LEI service providers (referred to as LEI transfer), the transfer could take a few days, up to 7 days, to be completed.

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