|
Which all entities have to take LEI |
Issuers having outstanding listed non-convertible securities as on August 31, 2023 have to take LEI number. Reserve Bank of India has already mandated certain category of entities to take LEI number. This category is based on volume of forex transaction, outstanding borrowings from banks and financial institutions, volume of NEFT transactions etc. RBI has also provided detailed timeline for certain other entities to obtain LEI number in phased manner. But now what SEBI has mandated is that irrespective of value of non-convertible securities, securities debt instruments and security receipts being listed on stock exchange these entities will have to take LEI number. |
|
LEI number is to be intimated to whom |
LEI number is to be intimated in centralized database of corporate bonds. |
|
If I have already taken LEI number then can I mention the same number of I will have to take again a new LEI number |
If any entity has already taken LEI number as mandated by RBI then they need not take again LEI number and they can submit same number in corporate bonds database. |
|
Who can issue LEI number? |
the LEI code may be obtained from Legal Entity Identifier India Ltd (LEIIL), a subsidiary of the Clearing Corporation of India Limited (CCIL), which has been recognised by the Reserve Bank of India as issuer of LEI under the Payment and Settlement Systems Act, 2007 and is accredited by the GLEIF as the LOU in India for issuance and management of LEI codes. |
|
Is LEI number required to be disclosed to stock exchange |
No |
|
Is it mandatory to take LEI number |
If an entity is going to undertake transactions above certain limits prescribed by RBI then it is mandatory to take LEI number. Also now if an entity has its non-convertible securities, securities debt instruments and security receipts listed irrespective of amount then also LEI number is mandatory. Further even if a company redeems it non-convertible securities, securities debt instruments and security receipts but then also if it continues to meet RBI criteria for taking LEI number then it would be mandatory for such entities to have LEI number. For eg. If an entity has a networth of Rs 70 crore or above but it does not have any of non-convertible security listed then even if SEBI does not mandate but as per RBI mandate it will have to taken LEI number. |
|
LEI number is permanent or it has to be renewed? |
LEI number is valid for one year and it has to be renewed thereafter. |
CLICK HERE DOWNLOAD PDF
Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement
