Legal Entity Identifier (LEI), Trusted Identifier

The Legal Entity Identifier (LEI) is a 20-character, alphanumeric code that uniquely identifies a legal entity or structure that is party to a financial transaction in any jurisdiction. The LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. Each LEI contains information about an entity’s ownership structure and thus answers the questions of ‘who is who’ and ‘who owns whom’. The LEI data pool can be regarded as a global directory that greatly enhances transparency in the global marketplace.

Who manages the LEI system globally?

The Global Legal Entity Identifier System issues LEIs and provides unique identification of legal entities involved in financial transactions all over the world. The Global Legal Entity Identifier Foundation (GLEIF), Switzerland, is a not-for-profit supra-national organization that supports and oversee the implementation and use of LEI.


Why should Exporters obtain a Legal Entity Identifier?


LEI is a global identifier that provides international recognition for your business.

  • It is standardized across countries.
  • LEI serves as an essential identifier in cross border (international) transactions.
  • LEI confers global credibility on your business or organization, helping you grow your exports.
  • SME exporters that obtain LEIs can stand out amongst their peers in the domestic and global marketplace.
  • You can mention your LEI on your website and stationery and incorporate in QR codes, bar codes, website seals, etc.
  • Regulators such as RBI, SEBI and IRDAI may require you to obtain a LEI for certain transactions.
  • As B2B e-commerce expands, LEI is being increasingly used for better identification of buyers and sellers on online marketplaces. It drastically cuts time in KYC and onboarding. 


Who is Eligible for Obtaining the Legal Entity Identifier?


Any legal entity that is a party to financial transactions can obtain a LEI. This entity could be an incorporated entity, partnership firm, proprietorship firm, bank, mutual fund, asset management company, trust, holding company, special purpose vehicle (SPVs) etc.


Why should you apply for the LEI through Rubix and LEIL?

Rubix Data Sciences (Rubix), a technology and analytics-based B2B risk management and monitoring platform, has been appointed as India’s first Validation Agent for the Legal Entity Identifier by GLEIF and Legal Entity Identifier India Ltd (LEIL), which is accredited by GLEIF as a Local Operating Unit (LOU) for issuing globally compatible LEIs in India.


Legal Entity Identifier India Limited (LEIL) is a Wholly Owned Subsidiary of The Clearing Corporation of India Ltd (CCIL). LEIL is the only Indian LEI issuer regulated by Reserve Bank of India under PSS Act. We have excellent data quality records for issuing fully compliant LEI with more than seven years of experience.

 

  • Rubix handholds you through the process of submitting correct documentation and helps you receive your LEI quickly
  • Rubix reminds you when your LEI is up for annual renewal thus ensuring that your LEI is always active
  • Since Rubix is a Validation Agent directly appointed by GLEIF and LEIL, your data and money are safe with us.


Frequently Asked Question (FAQ)


Q: What is LEI?


A. The Legal Entity Identifier (LEI) initiative is designed to create a global reference data system that uniquely identifies every legal entity, in any jurisdiction, that is party to a financial transaction. More specifically, LEI is a unique 20-digit code that is assigned to a legal entity.


Q: What is the purpose of LEI?


A. The global LEI system (GLEIS) has been set up by regulatory authorities [including G20 and the Financial Stability Board (FSB)] 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 counterparty risk. Its goal is to help improve the measuring and monitoring of systemic risk and support more cost-effective compliance with regulatory reporting requirements.


Q: What is the LEI structure?


A. The LEI is a 20-character alphanumeric code created using ISO 17442:2012 standard and has the following structure:

Characters 1-4: Prefix used to ensure the uniqueness among codes from LEI issuers (Local Operating Units or LOUs).
Characters 5-18: Entity-specific part of the code generated and assigned by LOUs according to transparent, sound and robust allocation policies. As required by ISO 17442, it contains no embedded intelligence.
Characters 19-20: Two check digits as described in the ISO 1744 standard.

Every eligible legal entity will be assigned unique LEI for use globally. The LEI itself will contain no embedded intelligence.

Q: How to register for LEI codes?

A. You have to contact Rubix Data Science India Private Limited (Rubix) to assist you in the registration and document submission process. Rubix. You can reach them on <EMAIL + PHONE> or visit on https://rubixds.com/lei/ and know more.


Q: Who is Rubix Data Science India Private Limited (Rubix)?


Rubix 
has been appointed as India’s first Validation Agent for the LEI by GLEIF and Legal Entity Identifier India Ltd (LEIL) which is accredited by GLEIF as a Local Operating Unit (LOU) for issuing globally compatible LEIs in India.

Q: Who is required to have an LEI?


A. Any legal entity that is a party to financial transactions can obtain a LEI.  This entity could be an incorporated entity, partnership firm, proprietorship firm, bank, mutual fund, asset management company, trust, holding company, special purpose vehicle (SPVs) etc.


Q. How much time does it take to process an LEI application?


A. it generally takes 6-48 hrs to issue an LEI after receipt of payment / submission of required documents


Q: Who is an Authorized Person for particular LEI?


A. Every legal entity applying for LEI and operating the portal to modify, update or renew is required to do so through officials authorized for this purpose.


a) Main user or primary user who is submitting the online application form for issuance of LEI


b) Authorized user – Name and email id of authorized officials named in the LEI online application form


c) Secondary user – Name and email id of Secondary authorized officials named in the LEI online application form


A duly authorized person is the official authorized through Letter of Authority / Board Resolution.


Q: What are the documents required to be submitted to Rubix for processing LEI applications?


A. The legal entity will have to share / email the soft copy of documents to lei@rubixds.in

·         Letter of Authority as per the format specified by Rubix team
·         Audited Financial Statements
·     Audited financials of Holding and Ultimate parent or auditor’s certificate as per format specified by Rubix team in case of holding company and ultimate parent

Q: Why do LEIs need to be renewed?

A. Renewing the Legal Entity Identifier is necessary to ensure that all information about the company connected to the LEI is up to date. Rubix offers cost effective rate for renewal of LEIs for any period from 1 year to 5 years. In case of multiyear renewal next renewal date will be shown for 1 year only because LEI data needs to be updated every year.



LEI video link: https://www.youtube.com/watch?v=vsMMUGjWm3E