Indian law firms react to amended BCI Rules allowing entry of foreign lawyers and firms

The Bar Council of India (BCI) has notified amended rules allowing foreign lawyers and law firms to practice foreign law in India on a reciprocity basis..The Rules make it clear that the work of foreign lawyers will be strictly confined to non-litigious areas involving foreign law, international law and arbitration matters, particularly concerning cross-border transactions and international disputes.The newly amended Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022 notified on May 13 prescribe the areas these firms are allowed to practice in, registration requirements, the fees they have to pay and the disciplinary action they may be subject to for non-compliance.A press release issued by BCI states that the Rules have been amended with the primary objective of safeguarding the interests of Indian advocates while regulating the practice of foreign law and international law in India..So how have Indian law firms reacted to this significant development?.Cyril Amarchand Mangaldas Managing Partner Cyril Shroff said,“It progresses a long pending issue. I welcome this.“ .JSA also welcomed the initiative. Joint Managing Partner Vivek K Chandy told Bar & Bench,"The Rules have been in the works for a long time and the notification dispels any uncertainties about the direction of the Indian legal market. While the actual impact of the new Rules will be felt in the days and months to come, JSA welcomes any initiative of the government that deepens and strengthens the Indian legal market’s ability to offer sophisticated legal advice to domestic and international clients doing business in India and globally." Joint Managing Partner Amar Gupta added,"JSA welcomes this initiative of the government that deepens and strengthens the Indian legal market’s ability to offer sophisticated legal advice to domestic and international clients doing business in India and globally.We also hope that this this is a precursor to overall reform of the legal services sector and BCI will, in the same spirit, address the grievances of Indian law firms which have been pending for long." .Khaitan & Co Senior Partner Haigreve Khaitan said that it was a positive step.“The entry of foreign law firms into India is a positive step that will result in increased knowledge sharing, innovation and faster adoption of global best practices. This must be accompanied by appropriate regulatory reforms for Indian law firms to create a level playing field and allow them to compete successfully on the global stage while spurring domestic growth. Overall, a welcome move and we look forward to the period of dynamic growth this will usher in for India’s legal industry,” he said..Nishith Desai Associates, Head International Disputes and Investigations, Vyapak Desai, said that amendments are in the right direction, but one can still expect challenges in light of the Supreme Court decision.."Amendments are in the right direction, providing opportunities to both Indian and foreign lawyers to participate in the growth of legal progression globally, including in India. In India, most of the laws and regulations fail at the implementation stage and it would interesting to see how these rules come into effect both in letter and spirit. One can still expect challenges considering the Supreme Court Judgement in AK Balaji case as to whether this requires an amendment to Advocates Act before implementation. For arbitrations, it appears that foreign lawyers can now participate in international commercial arbitration (ICA) wherein at least one party is non Indian. But it is not amply clear whether foreign lawyer can represent Indian party in such an ICA if dispute is governed under Indian law.".Saraf & Partners, Managing Partner Mohit Saraf said this is a significant and long-awaited step.."We welcome the Bar Council of India’s landmark decision to open up the Indian legal market through the issuance of new rules. This is a significant and long-awaited step that will enable the orderly development of the legal sector in India. It has the potential to elevate the quality of legal services and improve price realization for key players in India, ultimately benefiting clients and the profession alike. That said, there remain certain aspects of the rules that would benefit from further clarity. We are hopeful that the BCI will proactively address these to ensure smooth and effective implementation," he said..This is a developing story.