RBI mandates LEI code for all market participants, bars non-compliant entities

The banking sector is currently navigating regulatory changes and market volatility, with recent reports indicating pressure on major banks like HDFC Bank and SBI. This LEI mandate is another step towards strengthening financial market infrastructure.

• •RBI mandates all market participants (resident and non-resident) to obtain a valid Legal Entity Identifier (LEI) code.
• •Entities without an LEI will be ineligible for transactions in RBI-regulated financial markets.
• •Participants in the over-the-counter derivative market must also secure a unique transaction identifier.
• •Risk flag: Potential short-term operational hurdles for smaller financial entities in obtaining LEI codes.
• •Risk flag: Increased compliance costs for some market participants.