The Legal Entity Identifier (LEI) is a 20-character alpha-numeric identification code created by the International Organization for Standardization and established on the ISO 17442 standard (ISO). It links to essential reference data, allowing for the precise and distinct identification of legal organisations involved in financial transactions.

Each LEI comprises well-organized reference data divided into two sections:

Level 1 - who is who

Its data provides information about an individual's registration, such as its legal name, registration number, legal and headquarters addresses, and so on.

Level 2 - who owns whom

It contains information regarding an individual's institutional ownership, thereby addressing the question of who owns whom.

Clearly explained, the publicly accessible LEI data pool converts unstructured entity registration data into a standardized global directory, considerably increasing market clarity.

Objective of LEI

The LEI system was created in relation to the economic meltdown, and it aims to improve financial data system efficiency. When fully operational, the Global LEI System (GLEIS) will assure that there is only one traditional model. Ultimately, the major goal of the Global Legal Entity Identifier is to make it easier to identify any legal entity throughout the globe by simplifying, standardising, and harmonising the process.

Is it really necessary to have an LEI?

Any legal entity whose activities include financial transactions, in the broadest sense, need an LEI. There are now over 100 regulations in place across jurisdictions that require or demand the usage of LEI.

A number of European Union legislation and directives already call for the usage of LEI, including:

European Markets Infrastructure Regulation (EMIR)

EU trade repositories have been instructed to reject trade reports that do not include an LEI as of November 1, 2017, regardless of whether they pertain to EU or non-EU large investors.

MiFID II/MiFIR

Market participants will not be permitted to trade with in-scope investment companies if they do not have an LEI as of 3 January 2018, the day when MiFID II/MiFIR comes into force. Before delivering a service that would result in a transaction reporting liability, investment firms must obtain an LEI from their clients under MiFID II/MiFIR.

If the traders want to purchase or sell securities, the investment service provider/bank must ensure that they have a valid LEI. Although having an active LEI is not required if you only want to keep securities, it is highly recommended.

Cost of LEI?

The cost of an LEI varies depending on the service provider. The cost of an LEI is determined by the organization's own pricing structure, not by a "better" working LEI code.

LEI is merely a technique for identifying legal entities in order to gain a better understanding of global financial transactions, including financial adversary identification, transparency, and risk exposure.

As a result, while registering an LEI code, it is recommended to focus on the LEI price as the most important consideration.

The LEI pricing at EI Register is composed of the initial registration fee for the selected period of time as well as the GLEIF fee. The GLEIF surcharge is currently 11 USD per application for a one-year period.

GST is not included in the prices shown. The GST laws impose an 18 percent tax.

LEI prices	Cost of LEI renewal
1 year - 4350₹ (₹ 4350 / year)	1 year - 4350₹ (₹ 4350 / year)
3 years - 11970₹ (₹ 3990 / year)	3 years - 11970₹ (₹ 3990 / year)
5 years - 15900₹ (₹ 3180 / year)	5 years - 15900₹ (₹ 3180 / year)

How to get an LEI?

The Local Operating Unit (LOU) or the LEI Registration Agent can provide you with an LEI. Legal entities must fill out a registration form with the service provider to acquire their LEI.

LEIs can be managed on account of your consumers by any organization or private individual. Of course, you'll need a legitimate Letter of Authorization to prove you're authorized to operate on behalf of the specified company.