The Reserve Bank of India (RBI) selected the Clearing Corporation of India Ltd (CCIL) for issuing globally compatible legal entity identifiers (LEIs) on 6 January 2014.CCIL will act as a local operating unit for issuing globally compatible legal entity identifiers (LEIs )in India.
Legal Entity Identifiers (LEI) are a 20-character unique identity code assigned to entities which are parties to a financial transaction.
CCIL is recognised by the Regulatory Oversight Committee of the global LEI system and the unique identity codes issued by it will be accepted globally.
Once the infrastructure is set up, the LEI numbers will be mandatory for Over-the-Counter (OTC) derivative transactions. The implementation of the global LEI system is led by the Financial Stability Board (FSB).The functioning of CCIL as LEI will be under the regulation and oversight of the Reserve Bank of India.
About Clearing Corporation of India Ltd (CCIL)
The Clearing Corporation of India Ltd (CCIL) was set up in 2001 for providing exclusive clearing and settlement for transactions in Money and Foreign Exchange.
In 2013 the Reserve Bank designated CCIL as a critical Financial Market Infrastructure (FMI) for oversight.
Recently CCIL was granted the status of a Qualified Central Counterparty (QCCP).
The global financial crisis underscored the lack of a common, accurate and sufficiently comprehensive identification system for parties undertaking financial transactions across the globe.
International regulators recognised the importance of the LEI as a key component of necessary improvements in financial data systems.
The G20 Summit 2011held at Cannes endorsed FSB for the development and maintenance of a global LEI system. FSB also lead the co-ordination of international regulatory work.
FSB comprises of a Regulatory Oversight Committee (ROC), Central Operating Unit (COU) and Local Operating Units (LOUs).
• A Regulatory Oversight Committee has the ultimate responsibility for the governance of the GLEIS.
• A Central Operating Unit (COU) is the pivotal operational arm of the GLEIS and
• Local Operating Units (LOUs) will provide the primary interface for entities to register for the LEI system.
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What: Legal Entity Identifier
When: 6 January 2014