Legal Entity Identifier India Limited Registration - Overview

A Legal Entity Identifier (LEI) is required for organizations primarily for regulatory purposes and to enhance transparency in financial markets.

Here are the key reasons why it's necessary:

• Regulatory Compliance: Many regulatory authorities around the world require organizations involved in financial transactions to have an LEI. This helps regulators monitor systemic risk, prevent financial crime, and ensure market integrity.

• Risk Management: : LEIs provide a standardized way to identify entities participating in financial transactions. This helps financial institutions and other market participants assess counterparty risk more accurately.

• Transparency: LEIs help improve transparency in financial markets by providing a unique identifier for each legal entity. This transparency can help investors and other stakeholders make more informed decisions.

• Global Identification: LEIs are designed to be globally recognized and standardized, making it easier to identify entities across different jurisdictions and financial systems.

• Reducing Operational Complexity: Standardizing entity identification with LEIs can streamline processes for financial institutions and other market participants, reducing operational costs and errors associated with manual data entry and reconciliation.

Expenses for funeral: An additional amount of Rs.10,000 is given to the family of the deceased employee towards the funeral expenses.

Vocational Rehabilitation facility: Permanently or temporarily physically challenged, insured workers are entitled to vocational rehabilitation training at VRS.

Physical Rehabilitation facility: This for employees who got injured at the work premises or have been injured due to occupational hazards and caused a physical ailment.

Old Age Medical benefits: An annual payment of Rs. 120 as medical care benefits for retiring ESI employees or for those who are opting for VRS/ERS are also facilitated.

Extended illness benefits: This is for those ESI registered employees who are suffering from chronic diseases, can avail the extended sickness benefit for up to 2 years. It can be availed of once the standard sick leave of 91 days has expired.

• A Legal Entity Identifier (LEI) code is a unique 20-character alphanumeric code used to identify legal entities participating in financial transactions. It was introduced in response to the financial crisis of 2007–2008 in order to improve transparency and risk management in financial markets.
• The LEI code provides a standardized way to identify entities across different jurisdictions and financial systems, helping to streamline regulatory reporting and risk assessment processes. It contains information about the entity's ownership structure and is linked to reference data, such as legal and organizational details, stored in a global LEI database.
• LEI codes are issued by Local Operating Units (LOUs), which are organizations authorized by the Global Legal Entity Identifier Foundation (GLEIF) to issue and maintain LEIs. The LOUs are responsible for verifying the identity and legal status of entities applying for LEIs and for ensuring the accuracy and integrity of LEI data.

CCIL is the parent company that offers a host of services that enables trading on sophisticated Trading Platforms, reporting trades to a comprehensive Trade Repository, settle the trades on a guaranteed basis through its CCP services and enjoy a range of post-trade services. At every stage, the LEI will be a useful value-addition. Tax Seva Kendra uses its parent company’s expertise in trading, reporting and settlement engines.

• Counterparty Identification: LEIs provide a standardized way to identify legal entities involved in trading activities. This helps ensure accurate and efficient communication between counterparties in various financial transactions.

• Regulatory Compliance: Many regulatory authorities require the use of LEIs in trading activities. For example, under regulations such as MiFID II (Markets in Financial Instruments Directive II) in Europe or Dodd-Frank in the United States, certain transactions must include LEIs to enhance transparency, monitor systemic risk, and prevent market abuse.

• Risk Management: LEIs enable better risk assessment by providing comprehensive information about trading counterparties. Financial institutions and other market participants can use LEIs to assess counterparty risk more accurately and manage their exposure to potential risks.

• Transaction Reporting: LEIs are often required for transaction reporting purposes. Financial firms must include LEIs in their reports to regulatory authorities, providing crucial information about the parties involved in the transactions.

• Market Transparency: By using LEIs, trading activities become more transparent. Investors and regulators can track trading activities more effectively, identify market trends, and monitor the behaviour of market participants.

• Global Standardization: LEIs are designed to be globally recognized and standardized, making it easier to identify trading counterparties across different jurisdictions and financial markets. This facilitates cross-border trading activities and helps streamline regulatory compliance processes.

When you choose Tax Seva Kendra for your LEI Registration, we complete it in the earliest possible time and at an affordable rate. We have experts who will take care of all the formalities and ensure quick application so that you can focus on your business. We are here 24x7 to help you with your queries and offer you first free consultation when you avail our service. We are result and time oriented and will keep you updated on the status.