To
All the insurers
Re:
Legal Entity Identifier (LEI) code
****
A. Legal Entity
Identifier (LEI) code has been conceived of as a key measure to improve the
quality and accuracy of financial data systems for better risk management post
the Global Financial Crisis. The LEI is a 20-character unique identity code
assigned to entities who are parties to a financial transaction. The Reserve
Bank of India vide circulars RBI/2016-17/314 dated 1st June, 2017,
RBI/2017-18/82 dated 2nd November, 2017, RBI/2018-19/83 dated 29th November,
2018 and RBI/2018-19/177 dated 26th April, 2019, has implemented the
requirement of LEI in OTC derivatives markets, banking sector and govt.
securities market in a phased manner. LEI can be obtained from Legal Entity
Identifier India Ltd.
B. Pursuant to the
advice of the Financial Stability Development Council, Sub-Committee (FSDC-SC),
IRDAI examined the requirement to obtain LEI by its regulated entities and the
entities dealing with the regulated entities. Accordingly, it has been decided
that
i. insurers shall
necessarily obtain LEI as per the procedure prescribed in the above referred
circulars on or before 31st July, 2020;
ii. insurers shall
advise their existing corporate borrowers having total exposures of Rs. 50
crore and above, and have not obtained LEI till now, shall obtain LEI and provide
the LEI information on or before 30th June, 2020,
iii. borrowers who do
not obtain LEI, are not to be granted renewal/enhancement of credit facilities
by the insurers,
iv. no new loan
proposals shall be sanctioned by the insurers without LEI information, and
v. insurers shall
capture the LEI code of corporate borrowers in their records and specify the
same while reporting the transactions executed with such corporate borrowers.
C. This circular is issued
under the powers vested in Section 34 (1) of Insurance Act, 1938.
Pravin Kutumbe
Member
(F&I)