SEBI launches LEI system

Tags: National News

SEBI introduced the Legal Entity Identifier (LEI) system for issuers of non-convertible securities, securitized debt instruments and security receipts.

An Overview of the News

• LEI is a unique global identifier for legal entities participating in financial transactions.
• The system is primarily intended for issuers that have listed or plan to list non-convertible securities, securitized debt instruments and security receipts.
• It aims to create a global reference data system that identifies each legal entity that is party to a financial transaction.
• The LEI system will enable greater transparency and better risk management in the financial markets.
• Companies planning to list non-convertible securities, securitized debt instruments, and security receipts will need to obtain an LEI from an authorised issuer.
• The LEI system will also help prevent fraud and financial crimes by properly identifying and verifying legal entities participating in financial transactions.
• Entity Identifier India Limited is a subsidiary of Clearing Corporation of India Limited.

Securities and Exchange Board of India (SEBI):

• It is the regulatory body for securities and commodity markets in India established in 1988.
• Its main objectives are to protect the interests of investors in securities and promote the development of the securities market in India by regulating intermediaries, ensuring transparency and accountability of listed companies, and promoting investor education.
• It is owned by the Ministry of Finance, Government of India, but functions as an autonomous body with its own governing board.
• It has the power to issue guidelines, rules and regulations, investigate and punish fraudulent business practices.

Headquarters - Mumbai, Maharashtra