LEI-legal entity identifier 
Know about LEI

WHAT IS AN LEI?

  • A Legal Entity Identifier or LEI number is a unique global identification number for a company that is  issued by a GLEIF accredited Local Operating Unit. Financial  institutions and regulators use LEIs to identify participants in  financial markets.
  • It was devised following the 2008  financial crisis in an effort to better regulate and to promote  transparency within the global financial market. It is being  increasingly adopted in jurisdictions around the world in an effort to  achieve these aims. Companies that operate within jurisdictions that  mandate the use of LEIs will need to obtain one before they are allowed  to transact on the financial market within that jurisdiction.The RBI has mandated the use of LEIs by large corporate borrowers and legal entities operating within certain financial markets.

  • The RBI has mandated the use of LEIs by large corporate borrowers and legal entities operating within certain financial markets 

What is an LEI code?

  •  An LEI (Legal Entity Identifier) is a unique identification number  issued to companies that operate within the global financial system.  LEIs are based on ISO standard 17442:2012. An LEI is issued only once  for each company and consists of 20 characters.


 Details of LEI Code:-


  • The first 4 characters are unique to the LOU which has issued the LEI.
  • The 5th and 6th characters are the same for each company – 0.
  • The following 12 characters consist of a sequence of letters and numbers unique to each company.
  • The final 2 characters are known as the checking characters. 

What is the LEI renewal process?

  • LEIs are issued to entities with a  validity period of 1 year. This means that the LEI needs to be renewed  annually. We strongly recommend that you renew your LEI in a timely  manner, as the process can take some time. After the LEI has lapsed, it  is no longer valid and it is not possible to trade securities. In cases  where you know in advance that you require your LEI to be active for a  longer period of time, you can renew an LEI before the renewal date.  


  • Dreams Merchant monitors the validity dates of  our Clients’ LEIs. We will let you know when you need to renew your LEI.  You can apply to renew your LEI via the  application form on our website. In addition, Dreams Merchant is offering  multi-year LEI renewal packages including automated LEI renewal for up  to 5 years.

Who Needs an LEI?

  • According to the Mifid II directive 2014/65/EL, LEI codes are mandatory for all legal entities who trade in Finance, Share market, securities.The Reserve Bank of India has mandated the use of LEIs by all companies trading in OTC markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives in India.Mandatory use of LEIs was phased in between August 1, 2017, and March 31, 2018, as per the RBI Notification dated June 1, 2017.

What is Global legal entity Identifier(GLEIF)?

  • In June 2014, Global Legal Entity Identifier Foundation (GLEIF) is Established by the Financial Stability Board the is tasked to support the implementation and use of the Legal Entity Identifier (LEI).The foundation is controlled by the LEI Regulatory Oversight Committee and represents the public authorities from around the global financial markets. GLEIF is an international nonprofit organization headquarters established in Basel, Switzerland.
  • The GLEIF identify all parties (both receiver and sender) to the transaction, whereby each entity is registered and assigned an individual code. Accordingly, the system can be used as a management tool for analyzing counterparty risk.
  • GLEIF makes available only for a global online source that provides open, standardized and high-quality legal entity reference data. By doing so, GLEIF helps people and businesses to make smarter, less costly and more reliable decisions about whom to do business with
  • GLEIF is uniquely positioned in the entity identification market.GLEIF ensure that the operational integrity of the Global LEI System. GLEIF continuously increases both the information available within and the quality of, the LEI data pool and makes public access to the information ever easier. To obtain an overview of the services GLEIF provides support to Clients and its partners in the Global LEI System refer to the GLEIF Service Catalog.