Vide circular FMRD.FMID.No.10/11.01.007/2018-19, RBI has introduced mandatory obtaining of Legal Entity Identifier (“LEI”) registration for eligible entities participating in non-derivative market transactions. As a specimen, non-derivative forex transactions shall entail share capital remittance, amounts received on sale of purchase of goods or services, any kind of income or expense in foreign exchange etc. RBI has mandated that eligible participants are required to obtain Legal Entity Identifier by March 31, 2020.
In case of failure to obtain LEI within due date, the Bank shall not honour any kind of banking transactions of defaulting eligible participant. LEI registration is valid for only one year from the date of issuance/ last renewal date. Therefore, annual renewal is required to be made in this respect. ASC can assist in identifying eligible participants and offer support in obtaining LEI registrations for interested parties. For enquiries, kindly contact firstname.lastname@example.org or email@example.com
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