The Reserve Bank of India (RBI) on March 27, 2026, issued the Master Direction - Reserve Bank of India (Unique Identifiers in Financial Markets) Directions, 2026.
The following has been stated namely: -
• The following Definitions has been stated: -
o CCP (Central Counterparty): Interposes between system participants, acting as buyer to every seller and seller to every buyer.
o ETP (Electronic Trading Platform): As defined in RBI (ETP) Directions, 2025.
o OTC market: Market where transactions occur outside exchanges, including ETPs.
• Legal Entity Identifier (LEI): A 20-character unique code for entities in financial transactions, aimed at improving data quality and risk management.
• It’s Applicable to all OTC transactions (except individuals) in government securities, money market instruments, FX, and derivatives under Section 45U of RBI Act, 1934. For non-derivative FX transactions, LEI is required only for amounts ≥ USD 1 million (or equivalent).
• LEI Implementation:
o All participants must obtain LEI from a Local Operating Unit (LOU) accredited by GLEIF.
o Non-resident entities may use the LEI of their parent/management company.
o LEI is mandatory for participation; expired LEIs are not allowed.
• Applicable to OTC derivative transactions under RBI regulations for FX derivatives, rupee interest rate derivatives, forward contracts in G-secs, credit derivatives, and other specified directions.
• Market participants must ensure LEI/UTI capture in systems, follow CCIL-TR reporting guidelines, and comply with reporting deadlines, including interim UTIs if necessary.
Section A of the Directions on implementation of Legal Entity Identifier (LEI) shall come into force from March 27, 2026.
Section B of the Directions on implementation of Unique Transaction Identifier (UTI) shall come into effect from January 01, 2027.
[Notification No. RBI/FMRD/2025-26/392]
