Legal Entity Identifier

• LEI is a unique global identifier for legal entities participating in financial transactions.
• Legal entities are organizations such as companies or government entities that participate in financial transactions.
• An individual person is not allowed to obtain an LEI.
• The LEI system was initiated as a response to the financial crisis and is aimed at improving transparency in financial data systems.
• There are currently around 100 regulations among jurisdictions where the use of LEI is either required or requested. 
• Currently only about 1%-1.5% of the entities worldwide have an LEI 
• There are currently 34 LEI issuing organizations worldwide

LEI CODE STRUCTURE

An LEI consists of 20 alphanumeric strings.

Structure of LEI codes
1	2	3	4	5	6	7- 18	19	20
LOU code	Reserved	Entity identification	Check – sum

VALIDITY

• The validity of LEI is one year from the date that the legal entity identifier is registered.
• Annual renewal is a must for a company or organization that wants to continue to participate in regulated financial transactions.

OBTAINING A LEI

• Global legal entity foundation is not directly issuing LEI.
• It delegates this responsibility to local operating units(LOUs)
• LEI can be obtained from a couple of hours to days or weeks, depending upon the service provider.

IS LEI COMPULSORY?

• As on 3^rd of January 2018 LEI’s are mandatory for trading entities.
• The investment service provider /bank has to make sure the traders have an active LEI if they wish to buy or sell securities. 
• It is not mandatory to have an active LEI if you just wish to keep securities.

LEI PRICES

LEI prices can differ among various service providers.

1. It accepts all major credit cards (VISA, MASTERCARD, AMEX, MAESTRO) as well as PayPal.

Period	New application(Rs.)	Renewals(Rs.)
1 Year	4350	4350
3 years	11970	11970
5 years	15900	15900

• The introduction of LEI applies to all payments transaction of value Rs.50 crore or more by NEFT or RTGS (applicable from 1-4-2021)

LEIL

• Legal Entity Identifier India Limited is a wholly owned subsidiary of The Clearing Corporation of India Ltd and it acts as a Local Operating Unit.

REGISTRATION PROCESS

• Create an account on www.ccilindia-lei.co.in 
• Submission of basic details
• Getting an email confirmation for validation of the account created
• Submission of documents, information, payment of application
• Verification of documents by LEIL.
• Allotment of LEI code / rejection of application in case of inappropriate application.