Sebi on 3rd May 2023, introduced Legal Entity Identifier (LEI) system for issuers that have listed or planning to list non-convertible securities, securitised debt instruments and security receipts.
LEI is a unique global identifier for legal entities participating in financial transactions. LEI 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. It is a unique 20-character code to identify legally distinct entities that engage in financial transactions.
Presently, RBI directions, inter alia, mandate non-individual borrowers having aggregate exposure of above Rs. 25 crores, to obtain LEI code.
Issuers having outstanding listed non-convertible securities as on August 31, 2023, shall report/ obtain and report the LEI code in the Centralized Database of corporate bonds, on or before September 1, 2023.
,Issuers having outstanding listed securitised debt instruments and security receipts as on August 31, 2023, shall report/ obtain and report the LEI code to the Depository(ies), on or before September 1, 2023.
Issuers proposing to issue and list non-convertible securities, on or after September 01, 2023, shall report their LEI code in the Centralized Database of corporate bonds at the time of allotment of the ISIN.
Issuers proposing to issue and list securitised debt instruments and security receipts, on or after September 01, 2023, shall report their LEI code to the Depositories at the time of allotment of the ISIN.
The requirements are tabulated below:
| Category of security | Relevant Regulation | Applicability | Timeline |
| Nonconvertible Securities | SEBI (Issue and listing of Nonconvertible Securities) Regulations, 2021 | Issuer proposing to issue and list non-convertible security | On or after September 1, 2023 |
| Issuer having outstanding listed non-convertible security as on August 31, 2023 | On or before September 1, 2023 | ||
| Securitised Debt Instruments and Security Receipts | SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 | Issuer proposing to issue and list Securitised Debt Instruments or Security Receipts | On or after September 1, 2023 |
| Issuer having outstanding listed Securitised Debt Instruments and Security Receipts as on August 31, 2023 | On or before September 1, 2023 |
Entities can obtain the LEI code from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF). In India, 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.
This circular shall come into force with immediate effect.
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