INTRODUCTION OF LEGAL ENTITY IDENTIFIER FOR LARGE CORPORATE
BORROWERS
WHAT IS AN LEI?
The Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal
entity or structure that is party to a financial transaction, in any jurisdiction
It is a unique 20 digit alphanumeric code that is assigned to a legal entity
WHAT IS THE LEI IMPORTANT?
The global LEI system has been set up by regulatory authorities, including G20 and the
Financial Stability Board, to address the global financial crisis
The LEI is designed to enable the identification and linking of parties to financial transactions
in order to manage counter party risk
Its goal is to improve measuring and monitoring of systemic risk and support more costeffective
compliance with regulatory reporting requirements
ISSUING AUTHORITY
Entities can obtain their LEI code from Legal Entity Identifier India Ltd.(LEIL)
The LEIL is a wholly owned subsidiary of Clearing Corporation India Ltd.
LEIL is accredited by the Global Legal Entity Identifier Foundation (GLEIF) and recognised by
RBI as issuer of LEI under the Payment and Settlement Systems Act, 2007
Apart from the LEIL, any local operating unit accredited by GLEIF can issue LEI numbers.
After obtaining LEI code, banks shall also ensure that borrowers renew the codes as per GLEIF
guidelines.