Legal Entity Identifier India Limited

A Legal Entity Identifier is basically a worldwide reference number used to distinctly identify each legal structure or entity that is a party of any financial transaction. Legal Entity Identifier India Limited shall assign Legal Entity Identifiers to legal entities such as banks, intermediary institutions, trusts, mutual funds, holdings, partnership firms, asset management companies (AMCs), special purpose vehicles (SPVs), and any other institution that is party to a financial transaction.

A Legal Entity Identifier shall act as an identity proof for financial entities, ensure that the reporting of transactions is facilitated to Trade Repositories, and aid in ensuring that regulatory requirements are abided by.

Legal Entity Identifiers Code

ISO Standard 17442 determines the global Legal Entity Identifiers' structure in detail, and takes into consideration Financial Stability Board stipulations.

Legal Entity Identifier India Limited as a Local Operation Unit

The Clearing Corporation of India Ltd., offers a number of services which make it possible to carry out trading on state-of-the-art Trading Platforms and ensures that trade is reported to an extensive Trade Repository. It also offers a variety of post-trade services and ensures that all trades are settled through its Central Counter Party services. A Legal Entity Identifier at all stages shall be an efficient value-addition. Legal Entity Identifier India Limited uses the expertise of the Clearing Corporation of India Ltd. for trading, reporting, as well as settlement engines in an effort to bring to users the Legal Entity Identifiers web portal which offers a variety of benefits which are as follows:

1. Self-registration: It is easy to set up the system.
2. Challenges: It ensures that all the information of the entity is maintained in a proactive manner. 
3. Advanced search and filter: It aids in finding data quickly, including data related to foreign Legal Entity Identifiers.
4. Accuracy: It carries out rigorous checks using consolidated databases from a variety of Local Operation Units, thereby making it highly reliable.
5. Simple interface: The user guide and frequently asked questions (FAQs) are fairly simple.
6. Reserve Bank of India Mandate

A mandate has been issued by the Reserve Bank of India which has made it compulsory for corporate borrowers with aggregate fund-based as well as non-fund based exposure in excess of Rs.5 crore from any financial institution to ensure that they have Legal Entity Identifier registration. The registration will also have to be captured in the Central Repository of Information on Large Credits (CRILC). Doing so will help in assessing aggregate borrowing by corporate entities or groups in addition to monitoring a group or entity's financial profile. The following is the schedule drafted by the Reserve Bank of India for the implementation of Legal Entity Identifiers:

How to Obtain Legal Entity Identifiers

The following is the process to be followed for obtaining a Legal Entity Identifier:

1. Self-registration with the Legal Entity Identifier.
2. Courier the annual report, declaration, and board resolution to the Legal Entity Identifier.
3. Document verification.
4. Once the documents have been successfully verified, fees must be paid so that a Legal Entity Identifier is issued. The total fees will be Rs.7,000 + GST @ 18% = Rs.8,260.