Introduction
Reserve Bank of India has introduced mandatory obtaining of Legal Entity Identifier (“LEI”) registration vide circular FMRD.FMID.No.10/11.01.007/2018-19 dated November 29, 2018, issued by the Reserve Bank on requirement of Legal Entity Identifier (LEI) for participation in non-derivative markets.
Legal Entity Identifier (LEI) is a unique 20-character alphanumerical identifier (code) of a Legal Entity assigned in compliance with the international ISO 17442 standard as notified to create a global reference data system that uniquely identifies every Legal Entity (in any jurisdiction) that is a party to financial transaction in order to manage the counter party risk. The LEIs will be assigned by Legal Entity Identifier India Limited (LEIL).
The LEI is intended to facilitate identification of the contracting parties of any financial market transaction across jurisdictions
Legal Entity Identifier India Limited (CIN- U74900MH2015PLC268921) – A Wholly Owned Subsidiary of The Clearing Corporation of India Ltd. acts as a Local Operating Unit (LOU) for issuing globally compatible Legal Entity Identifiers (LEIs) in India.
Applicability
The Reserve Bank of India has mandated the implementation of the LEI system for:
a) all participants in the Over-the-Counter (OTC) markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives in India, in a phased manner. Entities without an LEI code would not be eligible to participate in the OTC derivative markets.
b) participants in non derivative markets. Non-derivative markets include Government securities markets, money markets (markets for any instrument with a maturity of one year or less) and non-derivative forex markets (transactions that settle on or before the spot date) that is cash, tom and spot transactions.
c) Large borrowers of banks.
Definition
1. LEIL: means the Legal Entity Identifier India Ltd. as registered under the Companies Act 2013, operating as the Local Operating Unit (LOU) in India.
2. LOU: Local Operating Unit assigning the LEI to Legal Entities in compliance with international standards and updating the Legal Entities’ details in the Global Legal Entity Identifier System.
3. GLEIS: GLEIS means the Global Legal Entity Identifier System which is a federated system and includes Local Operating Units (LOUs) under contract to the Global Legal Entity Identifier Foundation (GLEIF), end users accessing the LEI Repository via an open data license, and other partners collaborating with or supporting the GLEIF through an individual agreement.
4. GLEIF: means the Global Legal Entity Identifier Foundation (GLEIF) which is the operational arm of the Global Legal Entity Identifier System (GLEIS). The foundation is supervised by the Regulatory Oversight Committee (ROC).(http://www.gleif.org).
5. Direct Parent: means the lowest level parent legal entity that prepares consolidated financial statements based on the accounting definition of consolidation applied to this parent.
6. Legal Entity: Legal Entity means an entity eligible to receive Legal Entity Identifier.
Documents required for LEI registration:
1. MCA Registration Certificate of Legal Entity,
2. Pan card of the Legal entity and if legal entity is LLP provide PAN who has signed the Undertaking-cum-Indemnity,
3. Undertaking–cum-Indemnity (as per the format specified by EIL),
4. Audited Financial Statements of the Legal Entity,
5. Board Resolution to authorize an Authorized person or a certified true copy of the general board resolution or general power of attorney (as per the format specified by EIL)
6. In case of Legal Entity is LLP, Power of Attorney to the authorized persons/partners/employees of LLP to apply for LEI on behalf of the partnership Firm (duly notarized original copy) in the format specified by LEIL.
7. Power of Attorney in case of any further delegation by officials mentioned in Board Resolution (as per the format specified by EIL)
8. Shareholding pattern on company’s letterhead if not provided in the Audited Financial Statements
9. GST certificate of Legal Entity

Process for Obtaining Legal Entity Identifier
STEP 1: Self Registration on online portal
A duly authorized person by the company needs to first create an account on the online portal of LEIL, URL: https://www.ccilindia-lei.co.in/USR_LOGIN_REGISTER.aspx , filling the required information in the said form. Upon completion, an email will be sent to the provided email account for verification, after which the registration of LEI can be done.
STEP 2: New Registration
After successful login, the Authorized person needs to fill in the required data in the fields for new registration.
The user on clicking yes will be allowed to fill up the online form. The details that are to be entered are described below in a table form.
The LEI registration involves four pages of information as follows:
1. Company Information Page
2. Direct Parent Page (Holding Company Information)
3. Ultimate Parent Page
4. Payment Page

These are the details that are to be entered:
Fields Particulars
Name of the Authorized official Title (Mr/Ms/Mrs)
First Name of the Authorized official
Last Name of the Authorized official
Login Credentials of the Authorized official Board Authorized Officials/Partner/Prop. Email ID
Verify Board Authorized Officials/Partner/Prop. Email ID
Other Info
(of the Legal Entity) Address
Telephone No.
Mobile No.
Country
City
Postal Zip Code
Region
Group Email Address
Job Title
Alternative Email ID
Associated Entity Name of the Entity
(Associate entity, in relation to another entity, means an entity in which that other entity has a significant influence and it includes a joint venture, ultimate parent, parent LEI and any group entity)
Tax ID PAN Number
Registration Authority Name/Type If the legal entity has a CIN number or SEBI or PFRDA Registration Number, then enter MCA or SEBI or PFRDA, respectively
Registration Authority ID CIN number issued by MCA/ SEBI registration Number/NHB Number/PAN Number issued by Income Tax Department/ issued by DICGC/Gazette Notification number/International Securities Identification Number (ISIN)/PFRDA Number.
Headquarters Entity Address The Headquarters Address
Industry Classification In case of multiple line of business, please select from the dropdown the industry classification which represents the business unit generating highest revenues.
BIC Code Please enter BIC if assigned
Website Website, IF ANY
Jurisdiction Please select relevant country/ state of jurisdiction of legal formation and registration of legal entity. In case your legal entity is registered as multi-state entity, please select India

STEP 3: Relationship Data Information (Direct and Ultimate Parent Details)
• “Ultimate Parent” defined as the highest level legal entity preparing consolidated financial statements, as well as their “direct accounting consolidating parent”.
• “Direct Parent” defined as the lowest level legal entity that prepares consolidated financial statements that consolidate the entity.
In both cases, the identification of the parent would be based on the accounting definition of consolidation applying to this parent.
Relationship data means the legal entity has to input their parent details (i.e. direct and ultimate parent details) as applicable while submitting the application. This is the mandatory information which needs to be submitted.
In case of Proprietorship and Partnership firms, please select “No Parent” and then select Reporting Exception Reason as “Natural Persons”.

Parent Registration
Below are the three different scenarios applicable while reporting parent data:
A. Parent with an LEI
B. Parent without an LEI
C. No Parent
No Parent refers to “no identifiable parent” in case of the parent is a natural person or, parent is non-consolidating or there is no known person (e.g. diversified shareholding).
For all the three types there are separate ways to register and enter the field’s information.
STEP 4: Payment Page
There are two types of payment mode as given below:
1) Net banking/Credit/Debit Card
2) Demand Draft (DD)
Payment fee for New Registration:
1. Rs.4500 + 810 (18% GST) = Rs.5,310 (Revised from Rs. 5000+GST=Rs.5900) With effect from January 1, 2019
Payment fee for Renewal: (Renewal fees are not applicable at the time of new registration.)
1. Rs.3000 + 540 (18% GST) = Rs.3,540 (Revised from Rs. 3500+GST=Rs.4130) With effect from January 1, 2019
Note: Validity is of one year from date of issuance of LEI number.
STEP 5: After making payment Legal Entity needs to upload the documents. After uploading of all the documents, legal entity has to click on submit tab.

In case you need any assistance please feel free to write to sakshi@casameermittal.com

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