Question

    A Legal Entity Identifier is a __ character identifier

    that identifies distinct legal entities that engage in financial transactions. It is developed by ____ as a key measure to improve the quality and accuracy of financial data systems for better risk management.
    A 20; IMF Correct Answer Incorrect Answer
    B 15; G20 Correct Answer Incorrect Answer
    C 10; BIS Correct Answer Incorrect Answer
    D 7; BRICS Correct Answer Incorrect Answer
    E 20; G20 Correct Answer Incorrect Answer

    Solution

    Reserve Bank of India has made Legal Entity Identifier (LEI) code mandatory for all market participants, other than individuals. ü  The Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal entity or structure that is party to a financial transaction, in any jurisdiction.  ü  Legal  Entity  Identifier  India  Ltd  (LEIL) (only LOU of India), subsidiary of The Clearing Corporation  of  India  Ltd, will assign LEIs to any legal identity including but not limited to all intermediary institutions, banks, mutual funds, partnership companies, trusts, holdings, special purpose vehicles, asset management companies and all other institutions being parties to financial transactions. ü  LEI will be assigned on application from the legal entity and after due validation of data. For the organization, ü  LEI will  ·         Serve as a proof of identity for a financial entity ·         Help to abide by regulatory requirements ·         Facilitate transaction reporting to Trade Repositories Source: Legal Entity Identifier India ltd . ü  LEI is a 20 character global reference number conceived  by  G20   that  uniquely  identifies every legal entity or structure that is party to a financial transaction, in any jurisdiction.  ü  Internationally LEI is implemented and maintained by Global Legal Entity Identifier Foundation.

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