Page 50 - Banking Finance July 2017

RBI CIRCULAR

RBI CIRCULAR

Introduction of Legal Entity Identifier for 4. The rules, procedure and documentation requirements
may be ascertained from LEIL (https://www.ccilindia-
OTC derivatives markets lei.co.in/USR_FAQ_DOCS.aspx).

RBI/2016-17/314 5. After obtaining LEI code, entities should ensure that
FMRD.FMID No.14/11.01.007/2016-17 they are renewed as per GLEIF guidelines. Lapsed LEIs
will not be deemed valid for Trade Repository (TR)
1. The Legal Entity Identifier (LEI) code has been reporting.
conceived of as a key measure to improve the quality 6. These directions are issued under Section 45(W) of the
and accuracy of financial data systems for better risk RBI Act, 1934.
management post the Global Financial Crisis. The LEI
is a 20-character unique identity code assigned to Yours faithfully
entities who are parties to a financial transaction. (T. Rabi Sankar)
Chief General Manager
2. It has been decided to implement the LEI system for
all participants in the Over-the-Counter (OTC) markets
for Rupee Interest Rate derivatives, foreign currency Issuance of Rupee denominated bonds
derivatives and credit derivatives in India, in a phased overseas
manner. Accordingly, all current and future participants
would be required to obtain the unique LEI code as per RBI/2016-17/316
time lines indicated in the attached schedule (Annex). A. P. (DIR Series) Circular No.47
Entities without an LEI code would not be eligible to 1. Attention of Authorized Dealer Category - I (AD
participate in the OTC derivative markets, after the Category - I) banks is invited to Sr. No. 3, 4 and 5 of
date specified in the schedule.
Annex to A.P.(DIR Series) Circular No.17 dated
3. Entities can obtain LEI from any of the Local Operating September 29, 2015, paragraph No. 2, 3, 4 and 5 of
Units (LOUs) accredited by the Global Legal Entity A.P. (DIR Series) Circular No. 60 dated April 13, 2016,
Identifier Foundation (GLEIF) - the entity tasked to paragraph No. 2 of A.P. (DIR Series) Circular No. 31
support the implementation and use of the LEI. In India, dated February 16, 2017 and paragraph No. 3.2, 3.3.1,
LEI code may be obtained from Legal Entity Identifier 3.3.3 and 3.3.4 of Master Direction No.5 dated January
India Ltd.(LEIL) (https://www.ccilindia-lei.co.in), which 1, 2016 on 'External Commercial Borrowings, Trade
has been recognised by the Reserve Bank as issuer of Credit, Borrowing and Lending in Foreign Currency by
LEI under the Payment and Settlement Systems Act, Authorised Dealers and Persons other than Authorised
2007 and is accredited by the GLEIF as the Local Dealers' (Master Direction), as amended from time to
Operating Unit (LOU) in India for issuance and time, on the provisions of available routes of
management of LEI. borrowing, recognized lender and all-in-cost, etc. under

50 | 2017 | JULY | BANKING FINANCE

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