The LEI code has been conceived of as a key measure to improve the quality and accuracy of financial data systems for better risk management post the global financial crisis.
“The Reserve Bank of India (RBI) has decided to make Legal Entity Identifier (LEI) code mandatory for all market participants regulated by the central bank. All participants, other than individuals, undertaking transactions in the markets regulated by it— Government securities markets, money markets and non-derivative foreign exchange markets shall obtain Legal Entity Identifier (LEI) codes.
The RBI has given timelines for different types of participants to comply with the directions.
The LEI code has been conceived of as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis. The LEI is a 20-character unique identity code assigned to entities who are parties to a financial transaction.