SEBI, by way of its Circular dated July 27, 2023, has made it mandatory for all non-individual foreign portfolio investors (‘FPIs’), to provide their legal entity identifier (‘LEI’) code to their respective designated depository participants (‘DDP’). Existing FPIs are also required to provide the LEI code to their DDPs (if not given earlier) within 180 days from the date of the Circular.

Further, all FPIs need to ensure that their LEI codes are active at all times, failing which their account will be blocked for further purchases until their LEI codes are active. Previously, the Reserve Bank of India (‘RBI’) had mandated authorized dealer Category I banks to obtain LEI codes from resident non-individuals undertaking capital or current account transactions of INR 50 crore (approx. US$ 6 million) and above under the Foreign Exchange Management Act, 1999.