Today, the field of banking, finance and insurance has undergone a drastic transformation whereby there are a lot of cross border transactions which take place on a daily basis. Moreover, there are also lot of international companies whether banking or financial or insurance providers which are setting up offices in India and vice versa. It is owing to all these factors that the field of financial, banking and insurance legal services becomes crucial.
- In the wake of diverse businesses and industries setting up in the country as well as overseas, and giving a tremendous boost to the economy of a country at large, Governments as well as International financial organizations began to realize the need for having regulations and framework. Particularly, in the case of cross-border transactions, such need is felt even more. It is here that Banking, financial and insurance legal service providers’ role becomes crucial.
- The Banking, finance and insurance legal services assumed immense significance in the recent years owing to the complex financial transactions taking place not just domestically but also internationally;
- However, this area is extremely volatile and sensitive owing to the reliability on so many factors more particularly on how the positive or negative a country’s economy is faring.
Sub-branches of Banking, finance and Insurance Legal Services
Let us understand clearly what exactly gets covered within the purview of Banking, finance and insurance legal services. For the sake of convenience, let us take into account one field at a time.
- This area includes all the Acts, statutes, rules and regulations that have been laid down by the relevant authorities for the purpose of regulating the banking sector. So the major clients of this field are banks, financial institutions or companies, as well as non-banking financial companies.
- The areas dealt under this branch are securitization laws, derivatives, restructuring, banking and insolvency, project finance, asset finance, securities transfer and privacy and so on.
- Financial helps in the overall compliance and assistance in relation to all the financial or fiscal rules, regulations, notifications, acts that lay down a framework for the purpose of regulating financial transactions whether domestic or cross-border.
- This area of law primarily deals with lenders, borrowers, underwriters, mergers and acquisitions, tender offer financings, joint ventures, partnerships, collaborative projects and so on.
- One of the very fast developing markets is the market of Insurance laws, this branch of deals with providing legal assistance and representation in any insurance-related disputes in relation to insurance and reinsurance coverage, related environmental claims, product liability claims, professional liability claims, claims in relation to destruction or damage on account of the storm, fire, water losses, etc.
- Apart from this, this field also includes, dealing with bad faith claims, construction defect claims, employment related claims and construction bodily injuries related claims and so on.
So, from all this we can see and infer that the field of Banking, finance and insurance legal services is a challenging one and given the present atmosphere of liberalization and globalization, this field has become even more lucrative!