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TMI BlogRBI releases Draft Directions on requirement of Legal Entity Identifier Code for participation in non-derivative marketsX X X X Extracts X X X X X X X X Extracts X X X X ..... RBI releases Draft Directions on requirement of Legal Entity Identifier Code for participation in non-derivative markets - News and Press Release Dated:- 21-6-2018 - News - The Reserve Bank of India released Draft Directions on requirement of Legal Entity Identifier Code for participation in non-derivative markets. Comments on the draft directions are invited from banks, market participants and other interested parties by June 30, 2018. Feedback on the draft directions may be forwarded to: The Chief General Manager, Reserve Bank of India Financial Markets Regulation Department 1st Floor, Main Building Shahid Bhagat Singh Marg, Mumbai 400001 Or by email with subject line Feedback on draft directions on requirement of Lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Entity Identifier Code Background Reserve Bank of India in its Statement on Developmental and Regulatory Policies dated April 5, 2018 announced that RBI will implement the Legal Identity Identifier (LEI) mechanism for all financial market transactions undertaken by non-individuals in interest rate, currency or credit markets regulated by RBI to improve transparency in financial markets. Accordingly, draft directions on requirement of Legal Entity Identifier Code for participation in non-derivative markets are being issued for feedback. Ajit Prasad Assistant Adviser Draft Directions on requirement of Legal Entity Identifier Code for participation in non-derivative markets RBI/2017-18/ --- FMRD.FMID. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /11.01.007/2017-18 June 20, 2018 To All eligible market participants Dear Sir/Madam Draft Directions on requirement of Legal Entity Identifier Code for participation in non-derivative markets Please refer to Paragraph 8 of the Statement on Developmental and Regulatory Policies, First Bi-monthly Monetary Policy Statement for 2018-19, dated April 05, 2018, wherein, it was proposed to implement the Legal Entity Identifier (LEI) mechanism for all financial market transactions undertaken by non-individuals in interest rate, currency or credit markets regulated by RBI. 2. The Legal Entity Identifier (LEI) code has been conceived of as a key measure to improve the quality and accuracy of financial data systems ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Globally, use of LEI has expanded beyond derivative reporting and it is being used in areas relating to banking, securities market, credit rating, market supervision, etc. ( https://www.gleif.org/en/about-lei/regulatory-use-of-the-lei ). 3. The LEI system has been implemented in a phased manner for participants (other than individuals) in the over-the-counter markets for Rupee interest rate derivatives, foreign currency derivatives and credit derivatives in India in terms of RBI circular FMRD.FMID No. 14/11.01.007/2016-17 dated June 1, 2017. 4. It has now been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided to implement the LEI system for non-derivative financial markets as well. Participants, other than individuals, undertaking transactions in the markets regulated by RBI viz., Government securities markets, money markets and foreign exchange markets, shall obtain LEI codes as per the schedule given in the Annex. Only those entities that obtain an LEI code on or before the due dates will be able to undertake transactions in these financial markets after the due date. Transactions undertaken on recognized stock exchanges are outside the purview of the LEI requirement. 5. LEI is not required for transactions in foreign exchange markets involving an amount of less than USD 0.1 million or equivalent thereof in other currencies. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Entities operating trading and reporting platforms in these markets are required to capture the LEI code of the transacting participants. 7. Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF) ( https://www.gleif.org/en ). In India, LEI code may be obtained from Legal Entity Identifier India Ltd. (LEIL) ( https://www.ccilindia-lei.co.in ). The rules, procedures and documentation requirements may be ascertained from LEIL (https://www.ccilindia-lei.co.in/USR_FAQ_DOCS.aspx). 8. Entities undertaking financial transactions shall ensure that their LEI code is considered current under the rules of the Global LEI System. 9. These directions are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued under Section 45(W) of the RBI Act, 1934. Yours faithfully (T. Rabi Sankar) Chief General Manager Annex Schedule for Implementation of LEI in the Money market and G-sec market Phase Entities By Date Phase I Entities with Net Worth above ₹ 10000 mn October 31, 2018 Phase II Entities with Net Worth between ₹ 2000 mn and ₹ 10000 mn January 31, 2019 Phase III Entities with Net Worth between ₹ 700 mn and ₹ 2000 mn April 30, 2019 Phase IV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Entities with Net Worth between ₹ 700 mn and below July 31, 2019 Schedule for Implementation of LEI in Forex market for Cash, Tom and Spot transactions Phase Entities By Date Phase I Entities with Net Worth above ₹ 10000 mn January 31, 2019 Phase II Entities with Net Worth between ₹ 2000 mn and ₹ 10000 mn April 30, 2019 Phase III Entities with Net Worth between ₹ 700 mn and ₹ 2000 mn July 31, 2019 Phase IV Entitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with Net Worth between ₹ 700 mn and below October 31, 2019 - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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