UK Asks India To Set Up Financial, Legal Sectors

Chennai: The British Deputy High Commissioner in Southern India, Mr Micheal Connor, on Aug 4, made a pitch for opening up India''s financial and legal sectors. Lloyd''s of London is one of the largest and most successful insurance companies in the world, but is currently prevented from operating in India. Foreign joint venture partners are limited to 26 per cent in their shareholding. In banking, there are still regulatory barriers. Higher ceilings on foreign shareholding in banks would encourage transfer of expertise. Mr Connor dwelt in greater detail on the issue of FDI in legal services, mentioning at the outset that British lawyers have no intention of practising at Indian courts. Mr Connor said that the BPO companies of Standard Chartered Bank (SCOPE) and HSBC, both British companies, employed about 5,000 and 10,000 people respectively. Mr Connor also asked the retail sector to be opened up for FDI.