No fresh permission/ renewal of permission to LOs of foreign law firms- Supreme Court’s directions
A. P. (DIR Series) Circular No. 23
October 29, 2015
To,All Category – I Authorised Dealer Banks
Madam / Sir,
No fresh permission/ renewal of permission to LOs of foreign law firms- Supreme Court’s directions
The Hon’ble Supreme Court vide its interim orders dated July 4, 2012
and September 14, 2015, passed in the case of the Bar Council of India
vs A.K. Balaji & Ors., has directed RBI not to grant any permission
to any foreign law firm, on or after the date of the said interim order,
for opening of Liaison Office (LO) in India. Hence, no foreign law firm
shall be permitted to open any LO in India till further
orders/notification in this regard. However, foreign law firms which
have been granted permission prior to the date of interim order for
opening LOs in India may be allowed to continue provided such permission
is still in force. No fresh permission/ renewal of permission shall be
granted by RBI/AD banks respectively till the policy is reviewed based
on, among others, final disposal of the matter by the Hon’ble Supreme
Court.2. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
3. The directions contained in this Circular have been issued under Section 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(A. K. Pandey)
Chief General Manager
Chief General Manager
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