Lapsed LEI Code in India: Meaning, Renewal Process & Guide

Around 65,000 Indian LEI codes are currently lapsed. India LEI explains what the Lapsed status means, why it matters under RBI and SEBI rules, and how companies can renew their code in a few steps.

For many Indian finance teams, the news that their LEI code has lapsed arrives at the worst possible moment. The bank's operations desk comes back with questions about a ₹50 crore RTGS payment, a forex forward to hedge an import bill cannot be booked, the annual renewal of working capital limits stalls, or a foreign counterparty's compliance team flags the company during onboarding. India LEI is an official LEI registration agent for businesses in India. It works with EQS Group, a Local Operating Unit (LOU) accredited by GLEIF to issue LEIs, and helps companies register, renew and manage their LEIs, while the LEI itself is always issued by an accredited issuer within the Global LEI System. A lapsed LEI is one of the most common LEI problems, and one of the easiest to fix once you know what the status actually means.

What Does "Lapsed" Mean?

The LEI or the Legal Entity Identifier is the alphanumeric code which comprises of 20 digits, adhering to the ISO 17442 standard and is used for identification of a legal entity in financial transactions. The LEI is different from other identifiers like PAN, CIN or GSTIN because it is an identifier which requires a renewal process. In every LEI record, there is the mention of a next renewal date and this is mostly one year since the issuance or renewal of the code. By this date, the reference data of the company has to be verified once again.

In case there is any delay in renewal process, then the status of the registration in the Global LEI Index, operated by the Global Legal Entity Identifier Foundation (GLEIF), goes from "Issued" to "Lapsed". GLEIF refers to a lapsed LEI as a registration which is not renewed by its next renewal date and is unknown to public sources to be non-operational.

There are three important facts to know about lapsed LEIs. Firstly, a lapsed LEI is not canceled or revoked. The number does not change and is permanently assigned to your legal entity and is not ever issued to anyone else. Secondly, a "Lapsed" status implies that the information is outdated and is due for renewal. It is not necessarily inaccurate, but your counterparties and regulatory authorities cannot trust that the data has been verified by the deadline. Thirdly, requesting a new LEI will not solve your problem. Every legal entity is allowed to have only one LEI, and a new application would result in a duplicate.

A "Lapsed" status should not be mistaken for "Retired", which stands for the termination of the legal entity, for instance, its dissolution, striking off or merging with another firm.

How Common Are Lapsed LEIs?

Lapsing is more widespread than expected globally. The Global LEI System Business Report by GLEIF estimates the global renewal rate at only 57.1% in Q2 2026, while GLEIF data estimates the number of LEIs in lapsed status at 1.2 million (12 lakh) as of the beginning of October 2026.

However, India stands out from other nations due to a much higher renewal rate of 78.5% in Q2 2026, placing India third in the GLEIF ranking after Japan and Finland. This result is explained by close associations between Indian regulation and the usage of LEIs in practical finance. Nonetheless, GLEIF data places the number of lapsed Indian LEIs at 65,000 as of 1 October 2026, which accounts for roughly one-sixth of the total number of LEIs issued to Indian entities.

The codes typically expire due to pragmatic rather than intentional reasons. It might be that the LEI was generated to serve a specific purpose only, like sanctioning a loan or making a huge cross-border transfer. In the reminder sent for renewal of LEI, the address listed may be that of an ex-employee, external consultant, or an unmonitored mailbox. It could also be that the person who had generated the code, like CFO or company secretary, has left the organization.

Why a Lapsed LEI Is a Business Risk in India

The LEI in India is incorporated into a number of fundamental financial activities governed by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). This is the reason why a lapsed LEI becomes apparent at the time of a transaction rather than during a routine regulatory inspection.

Financial markets regulated by the RBI. According to the Reserve Bank of India (Unique Identifiers in Financial Markets) Directions, 2026, published on 27 March 2026, organizations other than individuals engaged in OTC transactions in government securities, money market instruments, foreign exchange instruments and derivatives are obliged to obtain an LEI and ensure that it is "current" in accordance with the rules of the Global LEI System and is not lapsed. The requirement applies for client foreign exchange transactions exceeding USD 1 million and OTC derivatives, including forex forwards and swaps which are employed as hedges for import or export exposure. Entities without a current LEI are not qualified to make transactions in these markets and regulated intermediaries and market infrastructure entities are obliged to keep records of the LEIs of the transacting parties.

Large transfers. Large RTGS and NEFT transfers worth ₹50 crores and above made by any entity should be made after including the LEIs of the remitter and beneficiary from 1 April 2021 onwards. From 1 October 2022 onwards, for international transactions in capital and current accounts, which are over ₹50 crore, the AD banks have to ensure that the LEIs captured are authenticated against the database of GLEIF and there could be a query raised if it turns out to be expired.

Borrowing from banks. Borrowers other than individuals having an aggregated exposure of ₹5 crore and above should have an LEI. According to the regulations issued by the RBI, these borrowers are not supposed to be sanctioned any new exposure, nor should any renewal and enhancements to the existing ones be allowed.

Securities Markets. As per the SEBI regulations, all issuers of non-convertible securities listed on stock exchanges are supposed to have an LEI. In case of foreign portfolio investors, the SEBI regulations are crystal clear. The account of any FPI whose LEI has been expired or lapsed will be blocked for further purchases in the securities market until the LEI is renewed.

International Counterparties. Banks, brokers, and investors from other countries check the LEI of companies in the GLEIF database while doing due diligence and onboarding. It means that a status of Lapsed indicates that the data of the company has not been updated on time and that can raise some issues or delays especially in places like the EU, where the broker needs the LEI of the client in order to conduct the trade.

How to Renew a Lapsed LEI in a Few Steps

However, the positive aspect of the situation is that you may renew the LEI anytime, and the same code is kept in use. Usually, the renewal is a quick online procedure which consumes almost no resources of yours.

First of all, check the status of the LEI. Find the name of your company or LEI in GLEIF online directory (search.gleif.org) and/or India LEI online company database and take note of the registration status, next renewal date, and the LEI issuer who is taking care of your LEI.

Make sure the data of your company is up-to-date. While renewing the LEI, the reference data of the company will be revalidated against the Ministry of Corporate Affairs (MCA). If something has changed since the previous renewal – for example, there was a relocation of registered office, name change or conversion from the private into the public limited company, then it will be updated during the renewal process. In case of non-MCA entities, like trusts, societies or partnerships, keep your registration certificate/deed at hand.

Pick the service provider to renew with. You are not limited by the current service provider managing the LEI. The lapsed LEI may be transferred to another provider and renewed in the same order. At India LEI, the transfer process is free, and for a lapsed LEI, it will always go hand in hand with a renewal process, so you will pay only for the renewal. Renewing with the current provider is generally the easiest option, but a transfer involves an additional confirmation step with the former provider.

Sign and pay. At India LEI, information about the company will be obtained automatically from the MCA database. You choose the period for which you wish to renew either for one year or as a package of annual renewals for three and five years, sign the power of attorney form and make payment via card/net banking/bank transfer and get the GST invoice in INR.

Confirmation and communication. After the issuer validates the data, the status of the LEI is restored to "Issued" in the GLEIF database. Review the record and in case of a delayed transaction, notify the bank or counterparty with the new information or LEI certificate.

How to Avoid a Lapse in Future

Annual Renewal is an obligatory part of the Global LEI System, but you do not have to deal with it every year. Having purchased a three- or five-year package, annual renewals are paid ahead of time and carried out by India LEI on its own, usually 30 to 60 days before the next renewal date, which means that each year will be cheaper than renewing the code annually. Code is renewed every year as required by the Global LEI System, but nobody has to worry about that.

There are some easy steps that you can also consider. Have your annual renewals sent to a shared finance or compliance email address instead of having it sent to the personal mailbox, and put the next renewal date into your compliance calendar along with other annual MCA filings, such as AOC-4, MGT-7, and GST returns. Make sure that your LEI data corresponds to MCA data. If there is any change in your registered office or name, inform your provider about it; India LEI will update the GLEIF record for you without charge.

India LEI supports LEI registration, renewal and transfer for businesses in India. Because company data is retrieved from MCA records, customers have only a few steps to complete and can get back to their actual work. Indian companies can check their LEI status and renew a lapsed code through indialei.in.

ABOUT THE AUTHOR

Karthik Prasad

Guest Contributor[email protected]

Karthik Prasad is a versatile technology and digital content guest contributor with a strong passion for writing about technology, health, gaming, mobile applications, and emerging digital trends. With a deep interest in simplifying complex topics for everyday readers, he creates engaging, informative, and SEO-friendly content that resonates with both tech enthusiasts and general audiences. Karthik brings a multidisciplinary approach to content creation, covering a wide spectrum of topics including consumer technology, health innovations, mobile apps, gaming updates, software insights, and digital lifestyle trends. His writing style focuses on clarity, accuracy, and reader-friendly storytelling, making technical concepts easy to understand. He is known for staying updated with the latest developments in the digital ecosystem and transforming them into well-structured articles, news features, and explainer content. His ability to blend research with practical insights helps deliver content that is both informative and impactful. At The Hans India, Karthik aims to contribute high-quality articles that inform, educate, and engage readers across categories such as tech news, health awareness, gaming culture, app reviews, and general digital innovation.

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