India Business Law Journal –  November 2020

Measuring up

Change can build up, or break down

The tweaking of regulations, however small, can trigger change, some of which will have been anticipated, and some not. In a regulation-heavy environment like India, this is a given, and the effect of any regulatory change can be manifold.

Changes to regulations in a digital world can improve stability, or remove it. Changes during a period of disruption can transform, reform or deform our labours. Change can magnify systemic behaviours regarding our worth, signify a necessity to adapt, and offer a benchmark to point the way.

Change can make an industry soar to the clouds. It can also come in the form of subtle advice, from those who know what it takes to reach a peak and to those who wonder just how high they can climb.

This month’s Cover story analyses the restrictions on foreign investment in digital media, first announced more than 12 months ago, the repercussions of which are now being felt. A recent clarification to the changed regulations has given foreign investors until October 2021 to comply with a cap in shareholding.

Yogesh Singh, a partner at Trilegal, says the clarification has expanded the scope of the restriction to entities that originally may not have been covered. He points out that while earlier terms such as uploading and streaming were not defined, it now seems clear that all digital media entities streaming news over digital platforms, as well as news agen- cies transmitting news to other entities, and news aggregators will fall within the purview of the restriction.

The result so far has been that at least one international news producer, the American online news website Huff- Post, has pulled the plug on its Indian operations. While more are expected to follow, this is a telling example of a change in policy, reportedly rolled out to better regulate digital media quality, with an ingrained agenda of combating foreign influence and interference in India, which has created industry-wide uncertainty, including from some very reputable entities. Is there any place for such turbulence as the country grapples with challenges on so many fronts?

In Will it work? we turn the spotlight on changes being rolled out with respect to labour laws. Twenty-nine labour laws amalgamated into four codes are to be implemented from April 2021. For employers this will mean more responsibilities including social security benefits to gig workers (independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers) and home-based workers. But the changes are to be implemented in a transformed environment, thanks to covid-19 and the tectonic shifts it has triggered. We analyse how the changes are expected to play out.

This issue’s What’s the deal? is India Business Law Journal’s annual law firm billing rates survey. Now in its 14th year, our survey is based on an analysis of 72 participating firms of between two and 375 lawyers. As expected, it reveals a market in turmoil, as the pandemic con- tinues to throttle economic activity and those struggling to keep afloat slash legal budgets. Priti Suri, at PSA Legal in New Delhi, says it all for 2020: “Everything has been topsy-turvy.”

The steep decline in legal fees has been exacerbated by the pandemic, but is by no means the main cause. Law firms across India have faced fee pressures for years due to factors including increased competition, stronger in-house legal teams, the undercutting of rates by firms of all sizes, and hard bargaining by clients.

India Business Law Journal’s survey continues to offer a benchmark for understanding the market. As always, the figures quoted must be viewed carefully, as partners and in-house counsel point to a continuing trend of discounts, fixed fees and other pricing models that may radically reduce final invoices.

Writing in this month’s Vantage point Akhil Prasad, India country counsel and company secretary at Boeing International Corporation, says the country’s aviation industry today is where the car sector was about two decades ago. “That day is not far away when we manufacture an aircraft in India with maximum localization,” he says, adding that constant dialogue and support between the government and the private sector are needed to make this happen.

This month’s Intelligence report reveals the top 10 performance enabling habits of India’s elite lawyers, for those aspiring to reach the peak of their profession. India Business Law Journal polled all 150 of India’s A-List Lawyers and Legal Icons, asking them to share their daily habits, practices and rituals – both personal and professional – that they believe helped to facilitate their rise to the top. The advice is insightful, sometimes surprisingly simple, and often profoundly astute in its measures of harmony and diligence in the pursuit of excellence.

Be an early riser – “it helps in maintaining my equilibrium”, says Darshika Kothari at AZB & Partners. “Trust your team,” counsels Karan Singh Chandhiok at Chandhiok & Mahajan. “Read, read, read,” adds Sawant Singh at Phoenix Legal. A must read for these times and for all those who aspire to better themselves.