India Bar Council to hold urgent market liberalisation talks

The Bar Council of India (BCI), the main body opposing the entry of foreign law firms into the Indian market, has called an urgent meeting to review the issue in a possible sign of recognition that legal market liberalisation may be inevitable. The two-day meeting, to held in early February, will gather important stakeholders, including state bar councils and legal associations, to discuss the future of the restrictions in light of recent developments including a rise in "best-friends alliances" between local and foreign firms and the new limited liability partnership bill, which formally allows such alliances. "The BCI has taken note of the reports on [the] rush of foreign firms to India and notification of the LLP Act, 2008," said BCI chairman, Suraj Narayan Prasad Sinha. "We have convened a meeting of various stakeholders ... to discuss these new developments and their impact on the legal service sector." Revised rules regulating market liberalisation will be considered at the meeting, with local industry fearing that it will be swamped by the size and innovation of their international counterparts. The timing of the meeting is opportune. In the past week, talks were held between Indian and UK government officials to discuss legal market liberalisation, Magic Circle firm Clifford Chance announced an alliance with local firm AZB & Partners and the ongoing High Court case banning foreign firms from setting up in India was reportedly reconvened. Last Friday, the Indian law minister, HR Bhardwaj, met with UK business secretary Peter Mandelson to discuss measures allowing Indian lawyers to practise in the UK and took the opportunity to issue a warning to local law firms about the inevitability of market liberalisation. "Whether you like it or not, the legal services [industry] will only go global and if you do not allow overseas law firms to come in, you will be looked upon with suspicion," he said. Managing partner of local law firm Amarchand Mangaldas Cyril Shroff was doubtful about when the market will open up to foreign firms. "I don't think in 2009 they will be allowed into the country," said Shroff.

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