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The nature of the Indian legal system is a big cause for concern among investors, said Mr M. Damodaran, Former Chairman, Securities and Exchange Board of India.
There is “uncertainty” and “lack of clarity” in the minds of investors over whether the laws and legislation in the country will remain consistent or change in the long run, Mr Damodaran said at the inauguration of the Chennai office of leading legal firm Amarchand Mangaldas.
Bills in the country take a long time to be legislated, he said. “The Banking Amendment Bill which I was instrumental in drafting in 1996-97 is still pending approval by Parliament. And so many other bills have queued up since then.”
There are major distortions in the country — in the form of groups of ministers, some empowered and some partially empowered, according to Mr Damodaran.
But the situation can only get better, he said. “Young India, which is impatient and forward looking, will drive the change. Everything that can go wrong in the country has gone wrong. But there is confidence among people that the law will catch up. There will be a situation wherein it pays to do business in an India which follows rules and regulations.”
According to Mr Bharat Vasani, Chief Legal and Group General Counsel, Tata Group, there is a sense of despondency about the judicial and political system.
Several projects, including steel projects, are stuck due to land issues, which has forced the Tata group to go outside India, he said.
But on an optimistic note, he said that key economic reforms like retail FDI are expected once the presidential elections are over.
Ms Dorothy Thomas, Partner and Office Head, Amarchand Mangaldas, Chennai, said sectors such as single brand retail, ecommerce and real estate will attract strategic investors and large deals in the future.
Full-service law firm Amarchand Mangaldas was founded in 1917 and today has 69 partners and 550 lawyers. It has offices in Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad and Kolkata.
The Chennai chapter will have practice groups in corporate, markets, private clients, real estate, finance and disputes.
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