Introduction of Legal Entity Identifier (LEI) for issuers who have listed and/ or propose to list non-convertible securities, securitised debt instruments and security receipts

Sebi on 3 rd May 2023, introduced Legal Entity Identifier (LEI) system for issuers that have listed or planning to list non-convertible securities, securitised debt instruments and security receipts.

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 directions, inter alia, mandate non-individual borrowers having aggregate exposure of above Rs. 25 crores, to obtain LEI code.

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.

,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 Depository(ies), on or before September 1, 2023.

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.

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 at the time of allotment of the ISIN.

The requirements are tabulated below:

Category of security Relevant Regulation Applicability Timeline Nonconvertible Securities SEBI (Issue and listing of Nonconvertible Securities) Regulations, 2021 Issuer proposing to issue and list non-convertible security On or after September 1, 2023 Issuer having outstanding listed non-convertible security as on August 31, 2023 On or before September 1, 2023 Securitised Debt Instruments and Security Receipts SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 Issuer proposing to issue and list Securitised Debt Instruments or Security Receipts On or after September 1, 2023 Issuer having outstanding listed Securitised Debt Instruments and Security Receipts as on August 31, 2023 On or before September 1, 2023

Entities can obtain the LEI code from any of the Local Operating Units