RBI Mandate - LEI For High Value Transaction

 After the global financial crisis between the years 2007 and 2009,  leaders operating through the G-20 and Financial Stability Board (FSB)  agreed to develop a solution to establish a global entity identification  system, in order to quickly and accurately assess the financial risk  exposures of the transacting entities worldwide. The coordinated efforts  led to introduction of Legal Entity Identifier (LEI) System and obtaining  LEI Code (a unique 20 digit code) by the transacting entities worldwide.

LEI allows each entity to be identified on a global database of entities  searchable by number, as many entities may have similar or the same  name.

Many countries like United States, United Kingdom, Canada and Australia have mandated obtaining LEI in order to  transact in financial markets activities (like securities trading, borrowing, or derivatives).