SEBI mandates ‘Legal Entity Identifier’ for issuers with listed NCS, securitised debt, security receipts
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Circular No. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2023/64, Dated 03.05.2023
SEBI has introduced ‘Legal Entity Identifier’ (LEI) system for issuers who have listed or proposed to list non-convertible securities (NCS), securitised debt instruments and security receipts.
The LEI is a unique global identifier for legal entities participating in financial transactions. LEI is designed to create a global reference data system that uniquely identifies every legal entity, in any jurisdiction, that is party to a financial transaction. It is a unique 20-character code to identify legally distinct entities that engage in financial transactions.
Presently, RBI mandates non-individual borrowers having aggregate exposure of above Rs. 25 crores to obtain the LEI code. In view of the above, SEBI mandates that issuers having outstanding listed non-convertible securities as on August 31, 2023, shall report/obtain and report the LEI code in the Centralized Database of corporate bonds, on or before September 1, 2023.
Similarly, issuers having outstanding listed securitised debt instruments and security receipts as on August 31, 2023, shall report/obtain and report the LEI code to the Depositories, on or before September 1, 2023.
Further, issuers proposing to issue and list non-convertible securities, on or after September 01, 2023, shall report their LEI code in the Centralized Database of corporate bonds at the time of allotment of the ISIN.
Similarly, issuers proposing to issue and list securitised debt instruments and security receipts, on or after September 01, 2023, shall report their LEI code to the depositories respectively at the time of allotment of the ISIN. The requirement of LEI for issuers proposing to list or having outstanding municipal debt securities shall be specified later.
Also, the LEI code can be obtained from Legal Entity Identifier India Ltd (LEIIL), a subsidiary of the Clearing Corporation of India Limited (CCIL), which has been recognised by the RBI as an issuer of LEI and is accredited by the Global Legal Entity Identifier Foundation (GLEIF) as the local operating unit in India for issuance and management of LEI codes.
This circular shall come into force from 03.05.2023.
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