SEBI mandates ‘Legal Entity Identifier’ for issuers with listed NCS, securitised debt, security receipts
- News|Blog|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 5 May, 2023
Latest from Taxmann
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.
Click Here To Read The Full Notification
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
