Reserve Bank of India finalises the requirement of Legal Entity Identifier Code for participation in non-derivative markets
The Reserve Bank of India (“RBI”) has issued a Notification No.10/11.01.007/2018-19 to finalise the directions on requirement of Legal Entity Identifier (“LEI”) LEI Code for participation in non-derivative markets-
Key Highlights of the Notification
A. All participants, other than individuals, undertaking transactions in the markets regulated by RBI i.e Government securities markets, money markets (markets for any instrument with a maturity of one year or less) and non-derivative forex markets (transactions that settle on or before the spot date) shall obtain Legal Entity Identifier (LEI) codes by the due date as stated below-
- Phase I (above Rs.10000 million): Proposed Deadline- April 30, 2019
- Phase II (between Rs.2000 million and Rs 10000 million): Proposed Deadline- August 31, 2019
- Phase III (up to Rs.2000 million): Proposed Deadline – March 31, 2020
B. Transactions undertaken on recognized stock exchanges are outside the purview of the LEI requirement.
C. In case of non-derivative forex transactions, while all inter-bank transactions shall be subject to LEI requirement, client transactions shall require LEI code for transactions involving an amount equivalent to or exceeding USD one million or equivalent thereof in other currencies.
D. In India LEI code may be obtained from Legal Entity Identifier India Ltd. (LEIL) (https://www.ccilindia-lei.co.in).
Source: Reserve Bank of India