A Legal Entity Identifier (or LEI) is a 20-character identifier that identifies distinct legal entities that engage in financial transactions.
Which Company Required LEI Code ?
It has been decided to require banks to make it mandatory for corporate borrowers having aggregate fund-based and non-fund based (Term Loan, Cash Credit Limit, Letter of Credit Limit and Bank Guarantee Limits, etc. ) exposure of Rs 50 crore and above from any bank to obtain Legal Entity Identifier (LEI) registration and capture the same in the Central Repository of Information on Large Credits (CRILC)
What is Role of LEI Code ?
The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis
Borrowers who do not obtain LEI as per the schedule are not to be granted renewal / enhancement of credit facilities
LEI Code Obtain Schedule
Process to obtain the LEI Code
1. Self registration with the LEI
2. Courier following documents to the LEI:
i. Board Resolution
ii. Declaration
iii. Annual Report
3. Verification of documents.
4. After successful verification of documents a Fees of Rs. 7000+18% GST i.e. Rs. 8260/- is to be paid (by way of NEFT or DD) for issuance of LEI.
After Payment 3-5 Working Days to issue LEI by LEIL