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MNS Credit Management Group Pvt. Ltd. Appointed As Validation Agent For LEI Issuance In India
By: MNS Credit Management Group
As of February 7, 2024, MNS Credit Management Group Pvt. Ltd. (MNS) serves as the designated Validation Agent for the Global Legal Entity Identifier (LEI) System in India, reinforcing its role in enhancing financial transparency and compliance.
Regulatory bodies like Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Income Tax Department and The Insurance Regulatory and Development Authority of India (IRDA) have recently emphasized on mandating Legal Entity Identifier (LEI) for all non – individual Foreign Portfolio Investors (FPIs) for the need for LEI codes in various financial transactions.
The Legal Entity Identifier (LEI) is an essential tool for improving transparency and reducing systemic risk in the Indian market. Adoption of LEI improves risk management and regulatory monitoring, especially for Small and Medium Enterprises (SMEs), by making it easier to identify and track entities participating in financial transactions. Having an LEI makes it easier for SMEs to obtain loans since it offers standardised, internationally recognised identification. Stakeholder confidence and trust are increased as a result, making it easier for SMEs to engage with the financial ecosystem. In general, the LEI framework benefits both larger businesses and SMEs by fostering a more robust and transparent financial environment in India.
Although digitalization makes it possible to join global supply chains, SMEs still have difficulties establishing their identities and legitimacy through KYC procedures. Collaborating with LEIL, we'll assist Indian SMEs in acquiring an LEI for enhanced recognition.
Leading B2B debt management and business information provider in India, MNS Credit Management Group Pvt. Ltd. has a track record of success in gathering international business accounts receivable and delivering business information reports since 1999.
MNS will function as a Validation Agent for Legal Entity Identifier India Ltd. (LEIL), a wholly owned subsidiary of the Clearing Corporation of India Ltd. and a GLEIF recognised LEI issuer.
By verifying legal entity data and guaranteeing accuracy prior to LEI issue, MNS will be essential to the LEI issuing process which will shorten legal entities' onboarding times by streamlining the LEI issuing procedure. Furthermore, for entities looking for Legal Entity Identifiers, MNS will undoubtedly help create a more effective and knowledgeable financial ecosystem by actively promoting digital transformation and accelerating validation procedures.
GLEIF is expanding the implementation of its Validation Agent Framework in India in response to the growing demand for Legal Entity Identifiers (LEIs) among small and medium-sized enterprises (SMEs) in the region.
To know more about LEI visit: https://www.mnscredit.com/