LEI Code Meaning for Indian Businesses and Banks
An LEI number (Legal Entity Identifier), also called an LEI code, is a unique 20-character alphanumeric code used to identify a legal entity in financial transactions and connect it to a public record.
Banks, regulators and counterparties use LEIs to distinguish one legal entity from another, even when organisations have similar names or operate across several countries. An LEI is not a bank account number, company registration number, tax identifier or payment code.
Each LEI belongs to one legal entity. Once assigned, the code remains connected to that entity and cannot be reused by another organisation.
The LEI code connects to a public record containing standardised information about the entity. The code acts as a unique reference, while the record provides the details needed to confirm which organisation it represents.
Level 1 data identifies the legal entity itself. It includes:
This information helps banks, regulators and other organisations confirm that they are dealing with the correct legal entity.
Level 2 data describes certain parent relationships based on accounting consolidation. An entity may be required to report its:
A reporting exception may appear when the entity has no qualifying parent, cannot disclose the relationship or cannot provide the required information under the applicable reporting rules.
Level 2 data should not be treated as a complete list of shareholders or beneficial owners. It specifically concerns accounting consolidation relationships within the Global LEI System.
Changes to an entity’s legal name, addresses or reportable parent relationships may require an LEI record update. The existing LEI remains connected to the entity after its information is updated.
Although it is commonly called an LEI number, the identifier contains both letters and numbers. 20-character alphanumeric code is therefore more accurate than “20-digit number.”
The code does not reveal the entity’s name, country, industry, legal form or ownership structure. Those details appear in the public LEI record rather than being encoded in the identifier. The standard format allows the same LEI to be recognised across different countries, financial institutions and reporting systems.
An LEI provides a consistent way to identify legal entities across financial markets and data systems. Instead of relying only on company names or domestic registration numbers, organisations can use one globally recognised identifier.
LEIs can support:
An LEI can help distinguish between separate companies within the same corporate group. Each eligible legal entity receives its own code, so a parent company’s LEI should not be used for a subsidiary unless the parent is the actual party to the transaction.
An LEI does not prove that an entity is financially sound, trustworthy or authorised to provide a particular service. It identifies the entity and provides standardised reference data that can support wider verification and due-diligence processes.
The Indian entities and transactions that need an LEI depend on the applicable RBI, SEBI or other regulatory requirement. Not every company is automatically required to obtain one simply because it operates in India.
A remitter LEI number is the LEI of the legal entity sending the payment.
Using the same example, Company A’s LEI is the remitter LEI, while Company B’s LEI is the beneficiary LEI.
| Banking field | What it identifies |
|---|---|
| Remitter LEI | The legal entity sending the payment |
| Beneficiary LEI | The legal entity receiving the payment |
| Account number | The bank account sending or receiving the funds |
| IFSC code | The Indian bank branch involved in the payment |
A parent company’s LEI should not be substituted for a subsidiary’s code simply because both entities belong to the same group. The LEI must identify the legal entity participating in the transaction.
Indian entities may have several identifiers, but they do not serve the same purpose.
| Identifier | What it identifies | Main context |
|---|---|---|
| LEI | A legal entity | Global financial transactions and reporting |
| CIN | A company incorporated in India | Corporate registration |
| PAN | A taxpayer | Income tax |
| GSTIN | A person or entity registered under GST | Goods and Services Tax |
| IFSC | An Indian bank branch | Electronic fund transfers |
| Bank account number | A particular bank account | Sending, receiving and holding funds |
An LEI does not replace an entity’s CIN, PAN or GSTIN. Similarly, an LEI cannot be used instead of an IFSC code or bank account number when making a payment.
Several identifiers may appear on the same banking or compliance form because each one identifies a different part of the entity or transaction.
The Global Legal Entity Identifier Foundation, known as GLEIF, oversees the operational integrity of the Global LEI System and makes LEI data publicly accessible through the Global LEI Index.
GLEIF does not issue LEIs directly. LEIs are issued and maintained by GLEIF-accredited organisations called Local Operating Units, or LOUs.
Registration Agents work with LOUs to help entities submit applications and manage their LEI records. LEI24 acts as a Registration Agent facilitating registration, renewal, update and transfer services through Nasdaq CSD SE, a GLEIF-accredited LOU.
Indian entities can obtain an LEI number by submitting their registration, ownership, address and contact information for validation. The code is issued after the information has been successfully verified.
The cost of an LEI number depends on the registration period and service selected. Registration and renewal charges may differ.
An entity can also transfer its LEI to another provider without changing the identifier itself. The LEI remains connected to the same legal entity throughout the transfer.
An LEI search can locate an entity using its legal name or an existing 20-character code. The result shows the entity connected to the LEI, its public reference data and its current registration status.
Check the following details before using an LEI in a transaction or document:
An ISSUED status generally means the LEI record is current. A LAPSED status means the renewal date has passed without the entity data being revalidated.
A lapsed LEI remains assigned to the entity and continues to appear in the Global LEI Index. The entity should renew the existing code rather than apply for another one.
A downloadable LEI certificate can present the code and associated entity information in a convenient document. The current status should still be confirmed against the public LEI record.
Yes. LEI, LEI number and LEI code all refer to the same 20-character Legal Entity Identifier.
No. An LEI identifies a legal entity, while a bank account number identifies an account held with a financial institution. Banking forms may request both because they serve different purposes.
An LEI certificate is a downloadable document presenting an entity’s LEI and associated reference information. It does not create a separate identifier or replace the public LEI record.
The code remains assigned to the entity, but its reference data must normally be renewed annually. If the renewal date passes without revalidation, the registration status changes from issued to lapsed.
A legal entity should have only one LEI. Separate companies within the same corporate group may each have their own code because they are distinct legal entities.
LEIs are intended for eligible legal entities rather than individuals acting in a personal capacity. Eligibility does not necessarily mean that an entity is legally required to have one.
Submit the entity’s legal, registration, ownership, address and contact information through a Registration Agent or accredited LOU. The LEI is issued after the application has been validated.
The price depends on the provider, registration period and services included. Registration and renewal may have different charges, while transferring an existing LEI does not change the code itself.
