Frequently Asked Questions

A LEI stands for Legal Entity Identifier. It's a unique 20-digit code assigned to every legal entity worldwide participating in financial transactions.

A LEI is part of a global initiative to uniquely identify parties involved in financial transactions, helping manage counterparty risk, enhance systemic risk monitoring, and streamline regulatory reporting.

A You can visit the websites of the Financial Stability Board (FSB), Regulatory Oversight Committee, and Global Legal Entity Identifier Foundation for general information on the LEI system's current status. Please visit https://www.gleif.org/en for more GLEIF information.

No, individuals acting in a natural capacity cannot currently apply for LEI.

LEI International Pvt Ltd accepts applications only through self-registration or via its Validation and Registration Agent only .

The SEBI circular mandates 'Debenture trustees' and 'Asset Reconstruction Companies (ARCs)' to obtain LEI Numbers by September 30, 2023. It applies to issuers who have listed and/or intend to list non-convertible securities, securitized debt instruments, and security receipts

The RBI mandate applies to any single transaction conducted via RTGS/NEFT with a value of INR 50 crore or above during the financial year.

The requirement applies to transactions of value INR 50 crore or above conducted through RTGS/NEFT, including FX Payments, Money Market Payments, Vendor Payments, Inter-company payments, or any other transaction. IRDAI Circular for Insurers and Corporate Borrowers

The IRDAI circular applies to both term loan borrowers and debenture issuers. It encompasses debentures, term loans, and bonds in calculating the overall exposure of an insurer or financial institution to corporate borrowers in various forms of debt.

No, the LEI number is globally unique and remains valid for both credit and non-derivatives markets. Therefore, there's no need to apply for a new LEI number.

The RBI circulars mandate participants in non-derivative markets and borrowers of banks to apply for an LEI in a phased manner. Non-derivative markets include government securities markets, money markets (instruments with a maturity of one year or less), and non-derivative forex markets (transactions settling on or before the spot date, such as cash, tom, and spot transactions).

Credit exposure encompasses all types of fund and non-fund-based limits with all banks. This includes, but is not limited to, loans, cash credit facilities, bank guarantees, letters of credit, outstanding commercial paper/corporate bonds, and forex/derivatives exposure limits. The exposure comprises both credit exposure (fund-based and non-fund-based credit limits) and investment exposure (including underwriting and similar commitments). The sanctioned limits or outstanding amount, whichever is higher, are considered for determining the exposure limit.

The circular specifies that non-individual borrowers with aggregate exposure of 5 crore and above from banks and financial institutions are required to ₹ obtain LEI codes within a specified timeline. Here are the deadlines for obtaining LEI based on total exposure:

• Above 25 crore: LEI to be obtained on or before April 30, 2023.
• Above 10 crore, up to 25 crore: LEI to be obtained on or before April 30, ₹2024.
• ₹5 crore and above, up to ₹10 crore: LEI to be obtained on or before April 30, 2025.

The limit of USD one million or equivalent applies to any single transaction involving USD one million or its equivalent in other currencies.

The Reserve Bank of India has mandated the implementation of the LEI system for 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 after the specified date in the schedule

A LEI follows a specific structure:

• Characters 1-4: Prefix ensuring uniqueness among LEI issuers (Local Operating Units or LOUs).
• Characters 5-18: Entity-specific part assigned by LOUs based on transparent allocation policies, containing no embedded intelligence
• Characters 19-20: Two check digits as per ISO 17442 standard. Every legal entity gets a unique LEI for global use, without containing any embedded intelligence.

Registering for LEI codes is simple:

Visit our LEI website : which is www.tnvlei.com

• Create an Account: The authorized official needs to select the option "Create An Account" and provide the required details.
• Activate and Verify Account: Upon submission, an email confirmation will be sent to the official's registered email address. Click on the link provided in the email to activate and verify the account.
• Login and Register LEI: Once the account is activated, log in using the credentials as Registered User . Navigate to the LEI service tab and register by filling in the necessary details.

Yes, each scheme of Mutual Fund/Alternative Investment Fund can apply for an LEI code. When applying for a sub-scheme under an umbrella, ensure that the legal entity name is submitted correctly . For Mutual fund sub-schemes, the legal name would be the name of the scheme only. By adhering to these guidelines, you can accurately apply for LEI codes for Mutual Fund/Alternative Investment Fund sub-schemes.

An LEI can be requested for various parties involved in financial transactions, including but not limited to:

• Registered Companies, including Registered Subsidiaries
• Funds/Trusts
• Non-Profit/Charity Organizations
• Government Bodies and Organizations
• Sole Proprietors (Individuals listed in their local register)
• Branch Offices (The main HQ entity must already have an LEI) etc

Individuals or operating divisions should not request an LEI. Instead, these entities should utilize the LEI of their parent organization. By following these guidelines, eligible entities can ensure proper registration for an LEI and compliance with regulatory requirements.

The documents required depend on the legal entity's classification chosen during the LEI application process. Here's a breakdown:

• Legal Entity Classification: At the time of filling up the LEI Application form, you'll be prompted to select your legal entity classification. The required documents will vary based on this classification.
• Mandatory Documentation: The legal entity is required to submit mandatory documents according to its classification. These documents are specified during the application process.
• Submission Process: Ensure you provide all necessary documents accurately as per your legal entity classification to facilitate the processing of your LEI application

To uniquely identify an entity, several fields are required during registration. These include :

• Legal Name
• Registered Address
• Headquarters Address
• Registration Authority/Number
• Entity Type and Legal Form
• Other identifying data as per GLEIF Norms

Additionally, applicants will need to provide parent relationship information, such as parent LEI and other parent reference data, along with relationship periods and accounting standards. For branch entities, applicants will be asked to provide information about their branch parent.

The LEI registration can be processed by any individual authorized by the Legal Entity / firm through a Letter of Authorization (LOA) in prescribed format issued by LEI International Pvt Ltd. This authorized person may be:

• A direct employee of the firm.
• An employee of a controlling interest.
• A third party explicitly granted permission by the firm to register on its behalf .

Ensuring proper authorization is essential through LOA as per applicable norms for accurate and compliant LEI registration. However , in certain applicable cases LOA exemptions exists .

Since March 1, 2018, the Global LEI Foundation has implemented a new standard coding system for Entity Legal Forms (ELF). This standard assigns an alphanumeric code consisting of 4 characters, drawn from the Basic Latin character set, to each legal form of an entity.

The ELF code serves as an identifier of the Legal Form of an entity. It allows for standardized representation and classification of legal forms across different jurisdictions.

The ELF standard was introduced to provide a uniform and standardized coding system for identifying the legal forms of entities globally. This enhances clarity and consistency in legal entity identification across different jurisdictions.