Which entities require LEI code in India? - India LEI
As of 3 January 2018, LEIs are mandatory for all companies who wish to continue trading in securities.

Which entities require LEI code in India?

India LEI - Parent company

Which entities require LEI code in India?

A need for a system that would regulate financial markets and offer more clarity became especially imminent after the Global Financial Crisis. To avoid a next collapse of major economies LEI codes were introduced to improve the quality of financial data and to decrease risks. LEI codes are regulated centrally by the international umbrella organization GLEIF. However, certain requirements, especially concerning which transactions specifically require LEI code, can differ among countries and therefore be confusing for market participants.

In India, LEI codes became first mandatory for entities in 2018, but since then regulations have changed and multiple new transactions requiring LEI have been added. The latest changes were enforced on 1st of April 2021 by the Reserve Bank of India. As follows, India LEI will provide a short overview of entities and transactions that require LEI.

  1. Transactions with credit derivatives, Rupee interest rate derivatives or with any foreign currency derivatives require LEI information (does not apply to individuals). 
  2.  LEI is also mandatory for all participants, except individuals, who wish to take part in markets regulated by RBI. In addition, all transactions undertaken in government securities markets, money markets (including all instruments with maturity of one year or less) and in non-derivative forex markets.
  3. LEI code is required for all entities wishing to make payment transactions of value 50 crore or more using the systems managed by RBI, such as Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). Essentially meaning that all large corporate borrowers, but also beneficiaries are a subject of acquiring LEI codes. It is to prevent different banks issuing loans for the same collateral.

The second point does not include governments or their departments, but does apply to all corporations, including the ones fully owned by government bodies.

These rules apply also to all foreign entities wishing to participate in above mentioned transactions. In case an entity is not registered as a legal entity in its country of incorporation, it should use the LEI code of their management/parent company. It includes for example all funds operating in India (registered as FPIs), which are managed by an entity abroad.

In case of any further questions on whether an LEI is mandatory for a certain entity or transaction do not hesitate to contact India LEI on e-mail: info@indialei.in.