Data quality management and its importance for the Indian market

27 helmikuun 2023

Trust in business partners is essential in a globalised economy where the number of legal entities conducting transactions is constantly increasing. The availability of accurate and transparent corporate data is crucial, especially in India, an emerging market with a rapidly growing economy. LEI (Legal Entity Identifier) plays a central role in this. This article highlights the importance of LEI numbers and their registration, especially for the Indian market.

Why are LEI numbers significant?

LEI numbers are a globally recognised standard for the unique identification of companies. They promote transparency and trust in business relationships by providing reliable information about a company’s ownership structure and identity. This is particularly important in India, where the economy is characterised by numerous small and medium-sized enterprises that often operate internationally.

Improving data quality and transparency

One of the Global Legal Entity Identifier Foundation’s (GLEIF) main initiatives is improving data quality and transparency. In 2023, the focus will be on topics such as data governance, data validation, and data harmonisation. These initiatives aim to increase the reliability of company data and thus create a solid basis for sustainable investments and qualified reporting.

Advantages for the Indian market

The introduction of LEI numbers and the registration of LEI numbers offers numerous advantages for the Indian market:

1. increasing transparency:

LEI numbers help identify business partners and reduce fraudulent activities.

2. improving investment security:

the availability of accurate data enables investors to make informed decisions, leading to more sustainable investments

3. promotion of economic growth:

Improved data quality supports the development of companies by facilitating access to international markets.

Global standards for cross-border trade

Global standards such as the LEI are essential for data interoperability and standardisation. This is particularly important for India, one of the world’s largest trading partners. Common standards promote digital transformation and the competitiveness of Indian companies in the global market.

LEI and open finance

Recent developments in the open finance movement highlight the importance of the LEI for the standardisation and aggregation of financial data. The LEI can reduce costs and improve data quality and transparency. Integrating LEI numbers in financial transactions is an essential step for India, which is increasingly establishing itself as a significant player in global finance.

Promoting the digital transformation

Digital transformation requires the use of interoperable and reliable data. The LEI provides a universal solution to identify businesses and improve data quality. This helps Indian companies operate more efficiently and transparently, ultimately contributing to sustainable economic development.

Conclusion

Implementing LEI numbers and continuously improving data quality are critical factors in promoting trust and transparency in the global economy. For the Indian market, they offer numerous benefits, including increased investment security, improved transparency and support for economic growth. GLEIF’s efforts and global standardisation through LEI numbers will continue to play an essential role in developing a robust and trustworthy digital infrastructure.