The Clearing Corporation of India will assign a unique identity code to participants in financial markets to facilitate over-the-counter (OTC) derivative transactions.
"The RBI has selected the Clearing Corporation of India Ltd (CCIL) to act as a Local Operating Unit (LOU) for issuing globally compatible Legal Entity Identifiers (LEIs)in India," RBI said in a notification.
LEI is a 20-character unique identity code assigned to entities which are parties to a financial transaction.
CCIL will issue unique identifier codes to all eligible and desirous legal entities participating in financial markets across the globe on a non-profit cost recovery basis, RBI said.
"On CCIL being recognised by the Regulatory Oversight Committee of the global LEI system, codes issued by it will be accepted globally."
RBI said that LEI numbers are mandated for OTC derivative transactions and large borrowers (legal entities)in a phased manner, to begin with.
Implementation LEI system as a part of G-20 mandate is being spearheaded by the Financial Stability Board (FSB).
The global system is expected to provide building block to contribute to and facilitate many financial stability objectives.
It will provide improved risk management in firms, better assessment of micro and macro-prudential risks, facilitation of orderly resolution, containing market abuse and curbing financial fraud, and enabling higher quality and accuracy of financial data.
