Time To Liberalise India's Legal Market

Time to liberalise Indias legal market?
Survey of India market opinion in association with Allen & Overy

|
June 2012
www.yougov.com | www.allenovery.com
All
agreed?
www.allenovery.com
3
Contents
Foreword 04
Survey analysis and summary 06
The survey results 08
Methodology 22
Appendix: Survey data tables 23
Allen & Overy LLP 2012
Time to liberalise Indias legal market? | 2012 2
There is a clear consensus
that the Indian legal market
should be liberalised, according
to 96% of respondents.
HITEC city in Hyderabad
5
www.allenovery.com
Opening a legal market
fully to the world works to
tbe great beveft of att of
the stakeholders.
44
Time to liberalise Indias legal market? | 2012
Foreword
In almost every area of professional or commercial
life, opening what has previously been a closed
domestic market to foreign participants is
contentious. It involves change and change can be a
threat as well as an opportunity.
Every country contemplating the
opening of its legal market undergoes
a period of intense debate as to the
advantages and disadvantages of
opening to each stakeholder anected
by the change. There are three main
stakeholder groups: the clients; the
lawyers and law Frms, and the
government. The debate becomes
harder because cultural values and the
rule of law, for which the legal
profession is custodian, are involved.
The voice of each of the groups is not
always accorded equal coverage or
weight in the media and there can be
ambiguity as to whether there is a
consensus within each group and
what that consensus is. Any initiative
which introduces into the debate hard,
independently developed, statistical
evidence is therefore a useful guide
for productive debate.
I welcome this survey, which has been
conducted by YouGov, an
independent opinion research agency,
at the request of international law
Frm Allen & Oery. Not only does it
shed light on the current debate about
legal market opening in India, but it
also contributes data which is relevant
to similar debates currently under way
in a number of other countries.
In practice, the opening of a domestic
legal market to foreign participants
anects, in the Frst place, law Frms
which advise large corporations, since
the overwhelming majority of law
Frms which expand outside their
home countries are targeting large
corporations, not small enterprises
or individuals.
My own experience at the Japanese
bar indicates that opening a legal
market fully to the world works to the
great beneFt o all o the stakeholders,
provided the change is introduced in
an extremely carefully planned way.
By Akira Kawamura, President, International Bar Association
Akira Kawamura
President
International Bar Association
Construction of the Mumbai Sealink
7
So why do Indian corporates and
the profession itself believe the legal
market should be liberalised? Because
Indian corporates are competing
on a global stage. In total, 90% of
respondents either Strongly agree
or Agree that opening the Indian
legal market will provide easier access
for clients and Indian lawyers to
international legal expertise. Another
89% believe it will provide a wider
choice for clients.
But its not all just about the needs
of Indian corporates. Respondents
also believe (89%) that it will lead to
more career opportunities for Indian
lawyers and will result in improved
legal education, while 80% agree it will
improve pay and work conditions for
lawyers in Indian law Frms.
So what will the impact be if the
market is opened to oreign law Frms
and lawyers? According to 77% of the
respondents, it will be positive or have
no impact. A further 21% believe it will
be negative and 2% dont know.
It is then just a question of how much
liberalisation to allow and when. When
asked about the general principle of
liberalisation, most respondents appear
to err on the side of partial liberalisation
(78%) as opposed to complete
liberalisation of the market (18%).
However, when this is tested further
in speciFc terms it becomes clear
that the overwhelming majority of
respondents are actually more in
favour of greater liberalisation.
Just 51 say oreign law Frms should
be allowed to establish o+ces in India
on a stand-alone basis and practise only
foreign law. This rises to 60% when
asked if they should be allowed to open
o+ces in India, employ and go into
partnership with Indian nationals, but
again practising only foreign law.
But when asked if they should be
allowed to open o+ces in India,
employ and go into partnership with
Indian lawyers, and merge with Indian
law Frms, to practise both Indian and
foreign law, the number saying yes
jumps to 79% overall. Again, partners
in law Frms are een more supportie
with 84% saying yes.
On both partial and full liberalisation,
the majority, 62%-63%, believe that
this should happen within two years
of new rules being introduced. Very
few of the respondents want to
wait any longer than Fe years, with
between just 6% and 9% choosing this
timeframe, depending on the level
of liberalisation.
So if the how and the when have
become clearer, the more fundamental
question of why still remains. While
this has been answered above from
the perspective of all the respondents,
including the private practitioners,
we also asked just the C-suite and the
general counsel what direct impacts
they envisaged for their companies if
the market were to be liberalised.
The answer is clear the largest
number of respondents (71%) believe
it will make their business more
globally competitive. This is followed
by making them better able to defend
their businesses from international
litigation (66%); receiving better
quality legal support (65%); and
easing their companys international
expansion/trade (64%), among others.
Only 11% think there will be no
perceied beneFts. Just 9 o C-suite
and general counsel respondents
beliee it will harm Indian law Frms
to the detriment of their companys
own business.
The possibly surprising outcome
of this survey is the large level
of agreement among the major
stakeholders in the liberalisation debate
in India. They believe liberalisation
should happen, that it will have a
positive impact for both clients and
the profession and that it should
happen soon.
I think this is the right time to identify the needs
of tbe ivav.tr, ava .bovta attor vaiav frv. tbe
opportunity to prove themselves.
But the Indian legal market remains
closed to oreign law Frms. Many
reasons have been put forward over the
years as to why this should remain the
case. However, the debate has tended
to be between senior members of the
profession in private practice. The
views of the Indian corporates, who are
stepping out onto the world stage to
compete with their international peers,
and of younger Indian lawyers, whose
careers will be most anected by the
outcome of the debate, have not
been prominent.
In order to understand the views of
all Indian stakeholders in the debate,
Allen & Overy engaged the services of
the independent international research
company, YouGov, to gauge the
opinions of 100 C-suite executives and
100 general counsel from Indias largest
companies on the topic of liberalising
the Indian legal market. It also
surveyed the opinions of 101 Indian
partners and associates from Indias top
50 law Frms.
YouGov asked questions about:
The quality of legal services provided
by Indian law firms
Whether the Indian legal market
should be liberalised
The extent of liberalisation
The impact of liberalisation
The impact of other legal changes
The timing of liberalisation
The conditions of liberalisation
The responses made for some
surprising reading.
There is a clear consensus that
the Indian legal market should be
liberalised, according to 96% of
respondents. Only 4% of respondents
believe it should not be liberalised at
all. One C-suite executive commented
that he thought there would be protests
rom existing law Frms in India i there
was liberalisation, but the survey seems
to suggest otherwise. In response to
nearly all questions, partners from
India`s top 50 law Frms are more
positive about change than executives
and general counsel 98% of Indian
partners think there should be some
form of liberalisation.
The support for liberalisation is not,
however, because of any perceived
shortcomings in the local legal market
itself 89% of respondents believe the
quality of legal services provided to large
corporations by Indian law Frms is either
good (56%) or very good (33%).
As one C-suite executive commented:
I think this is the right time to identify
the needs of the industry and should
allow |Indian| Frms the opportunity to
prove themselves.
of Indian partners think
there should be some
form of liberalisation
98%
Survey analysis & summary
The pace of change in the Indian legal market continues to accelerate.
Law Frms in India are widely reported to be hiring management
consultancies to advise them on modernising their businesses.
Their clients, Indias leading corporations, are competing on the global
stage and winning.
www.allenovery.com Allen & Overy LLP 2012
C-suite executive
The survey results
It should be completely liberalised
It should be partially liberalised
It should not be liberalised at all
16%
TOTAL
Gen Counsel C-Suite
Partner Associate
C-SUITE
4%
TOTAL
Gen Counsel C-Suite
Partner Associate
ASSOCIATE
2%
20% 27%
TOTAL
Gen Counsel C-Suite
Partner Associate
PARTNER
2%
TOTAL
Gen Counsel C-Suite
Partner Associate
GENERAL COUNSEL
7%
13%
78%
18%
4%
Ouest|on asked: Wh|ch of the fo||ow|ng best refects your own v|ews on whether or not the lnd|an |ega| market shou|d be ||bera||sed?
78% 71% 80%
80%
COMPLETELy, PARTIALLy OR NOT AT ALL?
TOTAL
The vast majority (96%) agree there
should be some form of liberalisation,
with most people opting for partial
liberalisation (78%) as opposed to
complete liberalisation of the market
(18%). But only 4% believe the market
should not be liberalised at all.
As is consistent throughout the
research, partners o law Frms were
more pro-liberalisation, having the
largest proportion of respondents in
favour of completely liberalising (27%)
and the smallest proportion saying there
should be no liberalisation at all (2%).
Should the Indian legal market
be liberalised?
www.allenovery.com
9 Time to liberalise Indias legal market? | 2012 8
While most respondents say they
favour partial liberalisation, when
this is tested in more speciFc terms it
becomes clear that the overwhelming
majority of respondents are actually
more in favour of full liberalisation.
Just 51 say oreign law Frms should
be allowed to establish o+ces in India
to practise foreign law only. This rises
to 60% when asked if they should
be allowed to open o+ces in India
employing and going into partnership
with Indian nationals, but again
practising only foreign law.
But when asked if they should be
allowed to open o+ces in India,
employ and go into partnership with
Indian lawyers, and merge with Indian
law Frms, to practise both Indian and
foreign law, the number saying yes
jumps to 79% overall. Again, partners
in Indian law Frms were een more
supportive, with 84% saying yes.
Shou|d fore|gn |awrms be
a||owed to estab||sh ofces
in India to practise foreign
lawonly?
yes
51%
Should they be allowed to
employ and go into partnership
with Indian nationals, but to
practise foreign lawonly?
yes
60% Should they be allowed to
employ and go into partnership
with Indian lawyers, and merge
w|th Ind|an |awrms, to pract|se
both Indian and foreign law?
yes
79%
Which laws should foreign law
Frms be allowed to practise
wHICH LAwS PRACTISEd By wHOM?
FOREIGN LAw
wITH FOREIGN
LAwyERS
FOREIGN LAw
ONLy wITH INdIAN
LAwyERS
INdIAN ANd FOREIGN
LAwwITH INdIAN ANd
FOREIGN LAwyERS
The desire for liberalisation is not
drien by a lack o conFdence in the
local legal market. The majority (56%)
of respondents describe the quality
of legal services provided to large
corporations by Indian law Frms as
Good. A further one-third (33%)
describe it as Very good, with 11%
describing it as Adequate and 1%
saying it is Poor. There is very
little ariation across the dinerent
respondent groups.
There is a near-even split between
those who believe the current quality
corporations by Indian law Frms is
Acceptable (51%) and those who
feel it Could be better (48%).
Interestingly, partners and general
counsel, the people who probably have
the best understanding of the Indian
legal market, are the only groups where
a majority, 51% and 50% respectively,
said the quality Could be better
but again, this is closely matched by
the number of respondents in those
groups who say it is Acceptable
(49% in both cases).
Most people do feel that the quality of
service is improving but the majority
(58%) think only by a small margin
(Getting a little better). Again,
partners were most likely to say it was
Getting a little better, with 69%
choosing this option. Associates were
the most optimistic, with 40% stating
the quality of service was Getting a
lot better. C-suite and general counsel
had the highest number of respondents
who belieed it was Not changing`,
but with just 14% believing this to be
the case.
Indian law Frms proide
quality service
11
vIEwS ON THE qUALITy OF SERvICE
Very good
Good
Adequate
Poor
Very poor
Dont know
33%
56%
11%
1%
HOwGOOd? ACCEPTABLE? CHANGING?
51% 48%
Acceptable
Could be better
Unacceptable
Dont know
Getting a lot better
Getting a little better
Not changing
Getting a little worse
Getting a lot worse
Dont know
29%
58%
11%
1%
Howwould you describe
the general quality of
legal services provided to
large corporations by
Ind|an |awrms?
Howacceptable to you is
the current general quality of
legal services provided to
large corporations by Indian
|awrms?
do you feel the quality of
services provided to large
corporations by Indian law
rms |s chang|ng?
betiere tbat foreigv tar frv. .bovta be abte
to practise both Indian and foreign law
10
\hen asked about the beneFts that
might now rom opening up the
Indian legal market to allow foreign
Frms to practise both international
and, through Indian qualiFed lawyers,
Indian law in the corporate Feld,
people see many beneFts.
In terms o beneFts or clients, the
vast majority either Strongly agree or
Agree that it will lead to easier access
to international legal expertise (90%);
wider choice for clients (89%); and
better service for clients on transactions
(78%) and litigation (63%).
There was no clear agreement as to
whether ees o oreign law Frms
working through o+ces in India
will be lower than at present, with a
33% versus 44% split between those
agreeing and those disagreeing, while
21 Neither agree nor disagree`.
But the beneFts o liberalisation or
Indian lawyers were well understood,
with big majorities again Strongly
agreeing or Agreeing that it will
lead to more career opportunities for
Indian lawyers (89%); better training
for Indian lawyers (83%); improved
legal education (89%); and improved
pay and conditions for lawyers in
Indian Frms ,80,.
In terms of threats to the top 50
Indian law Frms, respondents beliee
,63, that oreign law Frms will attract
away rom Indian law Frms some
of the most talented Indian lawyers.
There is much more agreement
among general counsel and C-suite
respondents on this point, with 76%
and 68% either Strongly agreeing
or Agreeing. Whereas partners and
associates are more evenly split, with
47% either Strongly agreeing or
Agreeing, and 44% either Strongly
disagreeing or Disagreeing.
However, it was less clear-cut as to
whether respondents agree that work
will now rom Indian law Frms to
oreign law Frms - 45 Strongly
agree` or Agree`, 14 Neither agree
nor disagree, and 39% Disagree.
While more people Disagree (48%)
that oreign law Frms will take jobs
away from Indian lawyers, 36%
Agree, 1% Strongly Agree and
another 11 Neither agree
nor disagree.
In certain ways, respondents believe
liberalisation will beneFt eeryone:
75% of respondents believe it will
bring international legal work being
done overseas into India; and 53%
beliee that oreign law Frms will
contribute in the corporate and social
responsibility arena.
There is one suggestion that people
overwhelmingly disagreed with that
the image of Indias legal profession as
a noble profession will be damaged.
Over two-thirds (69%) Disagree
with a further 3% Strongly
disagreeing. Just 13% Agree with
this statement, 1% Strongly agree
and 14 Neither agree nor disagree`.
Given the vast majority of respondents
are in favour of liberalising Indias legal
market, it is probably no surprise they
believe it will have a positive impact on
the quality of legal services provided to
large corporations in India.
However, as is consistent with other
results, the respondents are less
enthusiastic about letting foreign lawyers
practise only foreign law in India, with
just 47% saying it will have a Positive
impact on the quality of service.
But when it comes to allowing foreign
law Frms to practise Indian law
through Indian qualiFed lawyers ,ie
full liberalisation), those who see the
impact as Positive jumps to 83%.
The explanation for the variance, as
explained above, seems to come from
the large majority of respondents
who agree that allowing foreigners to
practise both international and Indian
law will be a good thing. That is, the
respondents feel that there will be less
positive impact from allowing foreign
law Frms only to practise international
law, presumably because even with the
recent increase in international activity
by large Indian companies, their main
requirement from the legal profession
remains their need for Indian, not
international, law advice.
Again, partners are the most optimistic
on this area, with 69% saying that
allowing foreigners to practise
foreign law will be Positive and an
overwhelming 90% saying it will be
Positie` i oreign Frms are allowed
to practise Indian law through Indian
qualiFed lawyers.
The impact on the quality of
legal services
General 38%
counsel
C-suite 48%
Partner 69%
Associate 44%
General 78%
counsel
C-suite 83%
Partner 90%
Associate 84%
47%
83%
18%
33%
7%
9%
2%
1%
Positive
No impact
Negative
Dont know
Question asked: What impact on the quality of legal services
provided to large corporations would each of the following
have? A||ow fore|gn |awyers to pract|se fore|gn |aw |n lnd|a
Question asked: What impact on the quality of legal services provided
to |arge corporat|ons wou|d each of the fo||ow|ng have? A||ow fore|gn
|aw frms to pract|se lnd|an |aw through lnd|an qua||fed |awyers
POSITIvE, NEGATIvE, NONE?
%SAYING POSITIVE
%SAYING POSITIVE
FOREIGN LAwONLy INdIA LAw
13
Other impacts of full liberalisation
agree liberalisation
will lead to more
career opportunities
for Indian lawyers
89%
There is one suggestion that people overwhelmingly
disagreed with that the image of Indias legal profession
as a noble profession will be damaged.
12
Other impacts of full liberalisation
AGREE OR dISAGREE?
Wider choice for clients 12% 77%
4 5 1 1
More career opportunity for Indian lawyers
11% 78% 5% 5% 1
Better training programmes for Indian lawyers who join those foreign
frms compared to programmes offered by ex|st|ng lnd|an |aw frms
11% 72% 9% 7%
Improved legal education for Indian law students through participation
by fore|gn |aw frms |n the|r teach|ng programmes
14% 75% 7% 4%
Easier access for clients and Indian lawyers to international legal expertise 79% 7% 3% 11%
Oompet|t|on from fore|gn |aw frms w||| |mprove pay and work cond|t|ons
for |awyers |n lnd|an |aw frms
10% 12% 9% 70%
Oompet|t|on from fore|gn |aw frms w||| |mprove the qua||ty of the serv|ce
prov|ded by lnd|an |aw frms to the|r c||ents |n the transact|ona| fe|d
12% 11% 10% 66%
Oompet|t|on from fore|gn transact|ona| |aw frms w||| |mprove the qua||ty of
the serv|ce prov|ded by lnd|an |aw frms to the|r c||ents |n the ||t|gat|on fe|d
9% 16% 20% 54%
lnternat|ona| |ega| work wh|ch wou|d otherw|se be performed by |aw frms
outside India will be performed by them inside India
6% 69% 10% 15%
Fees of fore|gn |aw frms work|ng through offces |n lnd|a w||| be |ower than
at present
1 32% 21% 41% 3% 2%
Foreign lawyers will take jobs away from Indian lawyers 1 36% 11% 48% 3%
Fore|gn |aw frms w||| attract away from lnd|an |aw frms some of the most
talented Indian lawyers
4% 59% 10% 26% 1
Work wh|ch wou|d otherw|se have been performed by lnd|an |aw frms w|||
|nstead be performed by fore|gn |aw frms
1 44% 14% 39% 1
The image of Indias legal profession as a noble profession will be damaged
1 13% 14% 69% 1 3%
Fore|gn |aw frms w||| contr|bute |n the corporate and soc|a| respons|b|||ty arena
1 52% 16% 29% 1 1
Ouest|on asked: lf lnd|a a||owed fore|gn |aw frms to estab||sh offces |n lnd|a and merge w|th lnd|an |aw frms to pract|se both |nternat|ona| |aw and,
through lnd|an qua||fed |awyers, lnd|an |aw |n the corporate fe|d, to what extent do you agree or d|sagree that each of the fo||ow|ng w||| occur?
Strongly agree Nether agree nor disagree Agree Disagree Strongly disagree Dont know
5% 4% 1 1
14
Given the position that large Indian
corporations are carving out for
themselves on the global stage, we
also asked just the C-suite and the
general counsel what direct impacts
they envisage for their companies if the
legal market is to be liberalised.
The answer is clear the largest
number of respondents (71%) believe
it will make their business more
globally competitive. This is followed
by making them better able to defend
their businesses from international
litigation (66%); receiving better
quality legal support (65%); easing
their companys international
expansion/trade (64%); generally
improving the professional nature of
their business (56%); making them
better able to exploit commercial
opportunities in India (51%);
and making them better able to
exploit commercial opportunities
internationally (49%).
Only 11% think there will be no
perceied beneFts. Just 9 o C-suite
and general counsel respondents
believe it will harm Indian law
Frms to the detriment o their
companys business.
The views of large Indian
corporations
IMPACT ON yOUR COMPANy
It will ease our international expansion/trade
Makes us more globally competitive
Makes us better able to defend ourselves
from international litigation
We will receive better quality legal support
Generally improve the professional
nature of our business
Makes us better able to exploit commercial
opportunitites in India
Makes us better able to exploit commercial
opportunitites internationally
91
90
89
75
72
65
60
Ouest|on asked: What d|rect |mpacts to your company, |f any, do you perce|ve
|f the lnd|an corporate |aw market were to be opened up to fore|gn |aw frms?
Harm lnd|an |aw frms to our detr|ment
l see no perce|ved benefts
Dont know
71%
71%
68%
64%
64%
67%
64%
65%
54%
58%
52%
51%
48%
49%
8%
10%
10%
12%
1%
General counsel
C-suite
There was a strong feeling among all
respondents that there are a number
of potential reforms, in addition
to allowing oreign law Frms to
practise in India, which would have
a Positive impact on the quality of
service provided to large corporations
in India. Most notably, 91% think the
establishment of specialist courts for
commercial dispute resolution will
be Positive.
Similarly, nearly all respondents
(90%) think taking steps to enhance
the credibility of arbitration will be
Positive. About the same number
of respondents (89%) think that
putting in place a system of continuing
professional education will also
be Positive.
Structural changes to how law Frms
operate, such as allowing limited
liability partnerships (75%), allowing
law Frms to hae websites and place
ads ,2,, and allowing law Frms to
have more than 20 partners (60%), are
all seen as having a Positive impact
on the quality of service provided to
large corporations in India.
Likewise, opening the Indian legal
market to foreign lawyers and law
Frms is seen by 65 o respondents
as being something that will have
a Positive impact on the quality
corporations in India. In fact 75%
o partners at law Frms beliee it
will be Positive, again the highest
proportion for any group. The C-suite
are similarly Positive, with 71%
believing it will improve the quality of
service their businesses receive.
The impact of other legal changes
on the quality of legal services
IMPACT OF OTHER CHANGES ON qUALITy OF SERvICE
Provide clarity on LLP (limited liability partnership)
|eg|s|at|on to enab|e |aw frms to reconst|tute
themselves as limited liability partnerships
Establish specialist courts for commercial
dispute resolution
Take steps to enhance the credibility
of arbitration
Put in place a system that requires lawyers
to obtain continuing professional education
A||ow |aw frms to have webs|tes and p|ace
advertisements in professional news publications
Open the indian legal market to foreign
|awyers/|aw frms
Amend the |aw to a||ow |aw frms to have
more than 20 partners
91% 7%
90%
89%
75%
72%
65%
60%
8%
9%
17%
16%
12%
23%
11
11
1
3%
10%
5%
1
21% 2
12% 4%
Question asked: Please state what impact each of the following might have on the quality of legal services provided to large corporations in India.
Postiive

No impact Negative Dont know
Time to liberalise Indias legal market? | 2012 16 17
On both partial and full liberalisation,
the majority of respondents
(62%-63%), believe that this should
happen within two years of new rules
being introduced. Very few of the
respondents want to wait any longer
than Fe years, with between just
6% and 9% choosing this timeframe
depending on the level of liberalisation.
Interestingly, in view of the perceived
beneFts to them o allowing oreign
law Frms in ,more career opportunity,
better training and improved pay and
conditions), associates tended to be
more conservative than others, albeit
still with only between 10% and 14%
opting or more than Fe years.
The timing of liberalisation
TIMING OF LIBERALISATION
Question asked: If Indian rules are changed to permit full entry of foreign law
frms |nto the lnd|an |ega| market, but on a phased bas|s, how |ong after the
|ntroduct|on of the new ru|es shou|d each of the fo||ow|ng be perm|tted?
22%
17%
28%
9%
26%
6%
27%
28%
8%
24%
17%
14%
19% 22%
32%
Immediately
1 year
2 years
3-5 years
6-20 years
FOREIGN LAw
wITH FOREIGN
LAwyERS
FOREIGN LAw
ONLy wITH INdIAN
LAwyERS
INdIAN ANd FOREIGN
LAwwITH INdIAN ANd
FOREIGN LAwyERS
Full liberalisation
should happen within
two years, according to
63% of respondents.
The Lotus Temple in New delhi
The conditions of liberalisation
Should liberalisation happen, which
the respondents indicate they think it
should, the question then turns to: on
what terms?
Respondents were asked what
conditions, if any, must be met before
oreign law Frms could be allowed
either to establish o+ces in India to
practise foreign law only, or to employ
and go into partnership with Indian
lawyers, and merge with Indian law
Frms, to practise both Indian and
foreign corporate law.
Respondents indicate there should
be some basic reform to the Indian
legal sector, such as allowing Indian
law Frms to market themseles and
their services, subject to rules to
protect the good reputation of the
Indian legal profession chosen by
71% in the case of both Indian and
international law and 64% in the case
of opening up the market for foreign
law competition only.
Likewise there is strong agreement
that the law should be clariFed so
that Indian law Frms are clearly
entitled to practise as limited liability
partnerships chosen by 75% for
both and 69% for Indian law only.
When it comes to practising foreign
law only in India, 70% of respondents
beliee the Indian o+ces o the
oreign law Frm should be subject
to professional regulation by the Bar
Council of India. Should they be
allowed to practise both Indian and
international law, 66% say they should
be subject to regulation by
the Bar Council of India and, if its
home country laws so require, its
home regulator(s).
In light of the consensus that
oreign law Frms should be subject
to Indian professional regulation, it
is not surprising that there is little
enthusiasm or the Indian o+ce,s,
o oreign law Frms to be subject to
regulation only by the oreign Frm`s
home regulator(s), with just 19% and
35% saying this should apply (for
foreign only, and both respectively).
I oreign law Frms are to be allowed
to practise foreign law only, 64%
believe the country in which the
oreign law Frm is established should
oner Indian law Frms reciprocal
rights. Surprisingly, this drops to just
13 i oreign law Frms are allowed
to oner both Indian and international
legal advice.
In the case of allowing foreign law
Frms to proide both local and
international advice in India, 70%
believe there should be a limit on
the number o oreign law Frms
permitted to do this.
!bev it cove. to foreigv tar frv. racti.ivg botb vaiav
and foreign law in India, 75% of respondents believe the
tar .bovta be ctarifea .o tbat vaiav tar frv. are cteart,
entitled to practise as limited liability partnerships.
lnd|an |aw frms shou|d be a||owed to market
themse|ves and the|r serv|ces, subject to ru|es
to protect the good reputation of the Indian
legal profession
The lnd|an offce(s} of the fore|gn |aw frm
should be subject to professional regulation
by the Bar Council of India
The |aw shou|d be c|ar|fed so that lnd|an |aw
frms are c|ear|y ent|t|ed to pract|se as ||m|ted
liability partnerships
The country |n wh|ch the fore|gn |aw frm |s
estab||shed shou|d offer lnd|an |aw frms
reciprocal rights
should be subject to professional regulation
only by its home regulator(s)
lnd|an |aw frms shou|d be a||owed to market
themse|ves and the|r serv|ces, subject to
rules to protect the good reputation of the
Indian legal profession
should be subject to regulation by both the
Bar Oounc|| of lnd|a and, |f |ts home country
|aws so requ|re, |ts home regu|ator(s}
The |aw shou|d be c|ar|fed so that lnd|an
|aw frms are c|ear|y ent|t|ed to pract|se as
limited liability partnerships
There should be a limit on the number of
fore|gn |aw frms perm|tted to do th|s
should be subject to regulation only by its
home regulator(s)
The country |n wh|ch the fore|gn |aw frm |s
estab||shed shou|d offer lnd|an |aw frms
reciprocal rights
CONdITIONS FOR FOREIGN LAw ONLy
CONdITIONS FOR INdIAN ANd FOREIGN LAw
70%
69%
64%
64%
19%
75%
71%
70%
66%
35%
13%
Ouest|on asked: What cond|t|ons, |f any, must be met before fore|gn |aw frms
cou|d be a||owed to estab||sh offces |n lnd|a to pract|se fore|gn |aw on|y?
Ouest|on asked: What cond|t|ons, |f any, must be met before fore|gn |aw frms cou|d be a||owed to emp|oy and go |nto
partnersh|p w|th lnd|an |awyers, and merge w|th lnd|an |aw frms, to pract|se both lnd|an and fore|gn corporate |aw?
www.allenovery.com
PROjECT METHOdOLGy
Allen & Overy developed this research with YouGov in
order to understand the views of all Indian stakeholders in
the liberalisation debate. Researchers carried out
quantitative interviews with 301 major stakeholders in
India, including C-suite executives, general counsel,
partners and associates.
The research was conducted through telephone
interviews with 100 C-suite executives and 100
general counsel, all from large publicly listed
(BSE-500) or equivalent private companies in India.
C-suite executies coer chie executie o+cers and
other senior corporate executives.
From Indias legal profession, 51 partners and 50
associates from the top 50 legal practices in India
were also interviewed. The list of the top 50 legal
practices was developed by YouGov, relying primarily
on the top 40 list contained in the 2011 RSG
India Report, but drawing on other sources and
directories to expand the list to 50 legal practices.
The responding sample has not been weighted in
any way.
This sample was chosen because experience shows
that it is the market for legal services to large
corporations, not small and medium-sized companies
or priate indiiduals, which oreign law Frms target
when a country liberalises its legal market and this
corporate sector is sericed by the top law Frms in
the market. It is the members of this sample who will
thereore be most anected by any liberalisation o the
Indian legal market.
About YouGov
YouGov is an international, full service market
research agency onering added alue consultancy,
qualitatie research, Feld and tab serices, syndicated
products and comprehensive market intelligence
reports. YouGovs sector specialist teams serve
Fnancial, media, technology and telecoms, lMCG
and public sector markets. The study was completed
by YouGovs reputation practice which specialises in
researching hard-to-reach opinion formers around
the world.
YouGov is considered a pioneer of online market
research and has a panel of 2.5 million people
worldwide. \ouGo has o+ces in the U.S., UK,
continental Europe and the Middle East.
A|| fgures, un|ess otherw|se stated, are from YouGov p|c. Tota| samp|e s|ze was 301 lnd|an |ega| and bus|ness profess|ona|s. F|e|dwork
was undertaken between 20 February 2012 and 11 Apr|| 2012. The survey was carr|ed out by te|ephone. The fgures have not been
weighted in any way.
301
For further information visit yougov.co.uk
50 Featherstone Street
London
EC1Y 8RT
United Kingdom
Tel +44 20 7012 6000
Survey data tables
jOB TITLE
TOTAL General Counsel C-suite Partner Associate
Sample 301 100 100 51 50
Which of the following best refects your own views on whether or not the lndian legal market should
be liberalised?
It should be completely
liberalised
18 13 16 27 20
It should be partially
liberalised
78 80 80 71 78
It should not be liberalised
at all
4 7 4 2 2
Should foreign law frms be allowed to establish offces in lndia to practise foreign law only?
Yes 51 56 42 55 56
No 45 40 55 41 40
Don't know 4 4 3 4 4
lf foreign law frms are permitted to open offces in lndia, should they be allowed to employ and go into
partnership with lndian nationals, but to practise foreign law only?
Yes 60 58 57 65 64
No 37 38 40 31 32
lf foreign law frms are allowed to open offces in lndia, should they be allowed to employ and go into
partnership with lndian lawyers, and merge with lndian law frms, to practise both lndian and foreign law?
Yes 79 83 79 84 68
No 18 14 19 12 32
Completed May 2012
YouGov A&O survey results
jOB TITLE
Sample 301 100 100 51 50
How would you describe the general quality of legal services provided to large corporations by lndian
law frms?
Very good 33 28 37 31 34
Good 56 58 49 61 58
Adequate 11 13 11 8 8
Poor 1 0 2 0 0
Very poor 0 0 0 0 0
Dont know 0 1 0 0 0
How acceptable to you is the current general quality of legal services provided to large corporations by lndian
law frms?
Acceptable 51 49 51 49 60
Could be better 48 50 48 51 40
Unacceptable 0 0 1 0 0
Do you feel the quality of services provided to large corporations by lndian law frms is changing?
Getting a lot better 29 25 29 27 40
Getting a little better 58 60 55 69 52
Not changing 11 14 14 4 8
Getting a little worse 0 0 0 0 0
Getting a lot worse 0 0 0 0 0
Dont know 1 1 2 0 0
THE NUMBERS BELOw ARE REPRESENTEd AS PERCENTAGES, NOT ALL ANSwERS wILL Add UP TO 100% dUE TO ROUNdING
jOB TITLE
Sample 301 100 100 51 50
What impact on the quality of legal services provided to large corporations would each of the following have?
Allow foreign lawyers to practise foreign law in India
Positive 47 38 48 69 44
No impact 18 22 21 12 10
Negative 33 40 31 20 40
Very bad 0 0 0 0 0
Allow oreign law Frms to practise Indian law through Indian qualiFed lawyers
Positive 83 78 83 90 84
No impact 7 9 9 0 4
Negative 9 12 5 10 8
Very bad 0 0 0 0 0
Completed May 2012
jOB TITLE
Sample 301 100 100 51 50
lf lndia allowed foreign law frms to establish offces in lndia and merge with lndian law frms to practise both
international law and, through lndian qualifed lawyers, lndian law in the corporate feld, to what extent do you
agree or disagree that each of the following will occur:
Easier access for clients and Indian lawyers to international legal expertise
Strongly agree 11 10 15 10 4
Agree 79 75 72 88 90
Neither agree nor disagree 7 12 7 2 4
Disagree 3 2 6 0 2
Strongly disagree 0 1 0 0 0
Wider choice for clients
Agree 77 74 76 82 82
Disagree 5 8 6 0 2
Competition rom oreign law Frms will improe the quality o the serice proided by Indian law
Frms to their clients in the transactional Feld
Agree 66 65 64 67 72
Disagree 10 15 10 6 4
Completed May 2012
jOB TITLE
Sample 301 100 100 51 50
Competition rom oreign transactional law Frms will improe the quality o the serice proided by
Indian law Frms to their clients in the litigation Feld
Agree 54 60 53 51 50
Disagree 20 17 17 27 26
lees o oreign law Frms working through o+ces in India will be lower than at present
Agree 32 30 31 37 30
Disagree 41 43 42 41 34
More career opportunity for Indian lawyers
Agree 78 76 74 82 84
Disagree 5 6 7 0 6
jOB TITLE
Sample 301 100 100 51 50
Better training programmes or Indian lawyers who join those oreign Frms compared to programmes
onered by existing Indian law Frms
Agree 72 73 71 71 76
Disagree 7 9 5 8 8
Improed legal education or Indian law students through participation by oreign law Frms in their
teaching programmes
Agree 75 75 70 84 74
Disagree 4 3 4 0 8
Competition rom oreign law Frms will improe pay and work conditions or lawyers in Indian law
Frms
Agree 70 65 71 75 72
Disagree 9 9 10 6 10
Completed May 2012
jOB TITLE
Sample 301 100 100 51 50
loreign law Frms will attract away rom Indian law Frms some o the most talented Indian lawyers
Agree 59 73 63 35 50
Disagree 26 16 18 45 40
\ork which would otherwise hae been perormed by Indian law Frms will instead be perormed by
oreign law Frms
Agree 44 52 49 33 30
Disagree 39 32 34 43 56
Foreign lawyers will take jobs away from Indian lawyers
Agree 36 41 42 22 26
Disagree 48 41 42 61 62
jOB TITLE
Sample 301 100 100 51 50
International legal work which would otherwise be perormed by law Frms outside India will be
performed by them inside India
Agree 69 69 73 65 66
Disagree 15 13 10 20 24
loreign law Frms will contribute in the corporate and social responsibility arena
Agree 52 52 54 51 52
Disagree 29 27 35 25 26
The image of Indias legal profession as a noble profession will be damaged
Agree 13 13 14 12 10
Disagree 69 59 73 73 78
Completed May 2012
jOB TITLE
Sample 301 100 100 51 50
What direct impacts to your company, if any, do you perceive if the lndian corporate law market were to be
opened up to foreign law frms? Please select all that apply. Only Corporations
Makes us more globally
competitive
71 71 71 n/a n/a
Makes us better able to
defend ourselves from
international litigation
66 68 64 n/a n/a
We will receive better
quality legal support
65 64 67 n/a n/a
It will ease our international
expansion/trade
64 64 65 n/a n/a
Generally improve the
professional nature of our
business
56 54 58 n/a n/a
Make us better able to
exploit commercial
opportunities in India
51 52 51 n/a n/a
Make us better able to
exploit commercial
opportunities internationally
49 48 49 n/a n/a
Harm lnd|an |aw frms to
our detriment
9 8 10 n/a n/a
Other 0 0 0 n/a n/a
l see no perce|ved benefts 11 10 12 n/a n/a
Don't know 1 0 1 n/a n/a
jOB TITLE
Sample 301 100 100 51 50
Please state what impact each of the following might have on the quality of legal services provided to large
corporations in lndia. Choose between: Positive, No impact, Negative, Don't know.
Establish specialist courts for commercial dispute resolution
Positive 91 87 91 96 96
No impact 7 10 9 2 4
Negative 1 1 0 2 0
Take steps to enhance the credibility of arbitration
Positive 90 88 90 100 84
No impact 8 8 9 0 12
Negative 1 3 0 0 0
Put in place a system that requires lawyers to obtain continuing professional education
Positive 89 90 89 84 92
No impact 9 8 10 14 6
Negative 1 1 1 2 2
Proide clarity on LLP ,limited liability partnership, legislation to enable law Frms to reconstitute
themselves as limited liability partnerships
Positive 75 77 68 88 72
No impact 17 14 21 10 22
Negative 3 4 4 2 2
Allen & Overy LLP 2012 www.allenovery.com
Completed May 2012
jOB TITLE
Sample 301 100 100 51 50
Allow law Frms to hae websites and place adertisements in proessional news publications
Positive 72 65 74 82 74
No impact 16 23 17 6 12
Negative 10 10 7 12 14
Open the Indian legal market to oreign lawyers,law Frms
Positive 65 59 71 75 58
No impact 12 15 10 8 14
Negative 21 25 16 18 24
Amend the law to allow law Frms to hae more than 20 partners
Positive 60 53 59 75 64
No impact 23 26 23 16 24
Negative 12 13 14 10 10
www.allenovery.com
jOB TITLE
Sample 301 100 100 51 50
lf lndian rules are changed to permit full" entry of foreign law frms into the lndian legal market, but on a
phased basis, how long after the introduction of the new rules should each of the following be permitted:
loreign law Frms permitted to establish o+ces in India to practise oreign law only
Immediately 22 19 18 25 30
1 Year 17 14 18 24 14
2 Years 24 28 22 12 30
3-5 Years 28 26 34 35 12
6-10 Years 9 12 7 4 14
loreign law Frms permitted to employ and go into partnership with Indian nationals but to practise
foreign law only
1 Year 17 21 16 16 14
2 Years 19 18 18 18 24
3-5 Years 32 27 36 41 22
6-10 Years 6 7 5 2 10
loreign law Frms permitted to employ and go into partnership with Indian lawyers, and merge with
Indian law Frms, to practise both Indian and oreign law
1 Year 14 17 14 12 12
2 Years 22 23 23 18 24
3-5 Years 28 27 24 37 28
6-10 Years 8 7 11 2 10
34
Completed May 2012
jOB TITLE
Sample 301 100 100 51 50
What conditions, if any, must be met before foreign law frms could be allowed to establish offces in lndia to
practise foreign law only? Please select all that apply.
The lnd|an offce(s} of the
fore|gn |aw frm shou|d be
subject to professional
regulation by the Bar
Council of India
70 69 60 86 76
The |aw shou|d be c|ar|fed
so that lnd|an |aw frms are
clearly entitled to practise
as limited liability
partnerships
69 67 64 80 74
The country in which the
fore|gn |aw frm |s
established should offer
lnd|an |aw frms rec|proca|
rights
64 59 65 78 58
lnd|an |aw frms shou|d be
allowed to market
themselves and their
serv|ces, subject to ru|es to
protect the good
reputation of the Indian
legal profession
64 64 59 71 68
subject to professional
regulation only by its home
regulator(s)
19 28 21 10 4
Other 1 1 0 2 0
None of these 0 0 0 0 0
jOB TITLE
Sample 301 100 100 51 50
What conditions, if any, must be met before foreign law frms could be allowed to employ and go into
partnership with lndian lawyers, and merge with lndian law frms, to practise both lndian and foreign corporate
law? Please select all that apply.
The |aw shou|d be c|ar|fed
so that lnd|an |aw frms are
clearly entitled to practise
as limited liability
partnerships
75 76 70 84 72
lnd|an |aw frms shou|d be
allowed to market
themselves and their
serv|ces, subject to ru|es to
protect the good
reputation of the Indian
legal profession
71 69 71 82 66
subject to regulation by
both the Bar Council of
lnd|a and, |f |ts home
country |aws so requ|re, |ts
home regulator(s)
66 67 61 73 70
The country in which the
fore|gn |aw frm |s
established should offer
lnd|an |aw frms rec|proca|
rights
13 17 14 10 8
There should be a limit on
the number of foreign law
frms perm|tted to do th|s
70 74 63 75 74
subject to regulation only
by its home regulator(s)
35 28 41 33 36
Other 0 0 0 0 0
None of these 1 1 1 0 0
36
Bangalore skyline
39
The possibly surprising outcome of this survey is the
large level of agreement among the major stakeholders
in the liberalisation debate in India. They believe
liberalisation should happen, that it will have a
positive impact for both clients and the profession
and that it should happen soon.
www.allenovery.com
Allen & Overy LLP 2012 l CS1205_CDD-3083
FOR MORE lNFORMATlON, P|EASE OONTAOT:
Allen & Overy LLP
One Bishops Square
London
E1 6AD
United Kingdom
Tel +44 20 3088 0000
Fax +44 20 3088 0088
London
Allen & Overy means Allen & Overy LLP and/or its affiliated undertakings. The term partner is used to refer to
a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications or an
individual with equivalent status in one of Allen & Overy LLPs affiliated undertakings.
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Time To Liberalise India's Legal Market

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Time To Liberalise India's Legal Market

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Time to liberalise Indias legal market?

Survey of India market opinion in association with Allen & Overy

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