For transactions in the interest rate, FX, and credit derivative markets, a legal entity identification (LEI) is required. The Reserve Bank of India (RBI) has made LEI mandatory for enterprises and organizations with a total fund-based and non-fund-based credit exposure of more than Rs 50 crore. If you want to know more info about LEI code or numbers click here.
The LEI is based on four basic principles:
- It is an international standard.
- Each legal entity is given a single, unique identifier.
- It is backed up by high-quality evidence.
- It is a public good that is provided to all users for free.
When a legal entity obtains an LEI, the organization that issued the LEI will publish it together with the accompanying LEI reference data. This means that the entire LEI population’s data is always open to the public for unrestricted access by anyone interested.