OTC market participants to get unique identity code

The RBI has decided to introduce 20- character unique identity code Legal Entity Identifier (LEI) for all participants in the Over-the-Counter (OTC) derivatives market in a phased manner.
LEI code has been conceived of as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis, the RBI said today.
It is a 20-character unique identity code assigned to entities who are parties to a financial transaction.
"It has been decided to implement the LEI system for all participants in the OTC markets for Rupee Interest Rate derivatives, foreign currency derivatives and credit derivatives in India, in a phased manner," the central bank said.

Accordingly, all current and future participants would be required to obtain the unique LEI code, it added, while listing the timeline for different participants.
"Entities without an LEI code would not be eligible to participate in the OTC derivative markets, after the date specified in the schedule," the RBI added.
Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF), the body tasked to support the implementation and use of the LEI.
In India, the code could may be obtained from Legal Entity Identifier India recognised by the RBI as issuer of LEI under the Payment and Settlement Systems Act.