Indian law firms are experiencing a fundamental shift in their business model as litigation work declines. According to reports from Mint, a clutch of Indian law firms practicing securities law are pivoting their attention to advisory services, as litigation work has been shrinking over the last two years. Rohit Jain, managing partner at Singhania & Co, noted that there has been a visible shift towards advisory, preventive compliance and settlement strategy rather than only post-order litigation. Clients are increasingly seeking early risk assessment, settlement advice, compliance remediation and board-level advisory services.
The shift is reflected in significant hiring decisions across major law firms. Shardul Amarchand Mangaldas has nearly doubled its securities advisory team over the past few years to about 15 professionals, with about three lawyers in this team also representing entities in matters related to Sebi and the Securities Appellate Tribunal (SAT). Moin Ladha, partner at Khaitan & Co, confirmed that the advisory team has expanded over the last two years, with the number of retainers in security regulatory advisory teams also going up. Mindspright Legal has increased the size of its securities advisory practice since 2024 to four associates and a partner, with the firm also deploying litigation lawyers on advisory matters related to orders passed by Sebi and SAT.
The shift reflects a broader change in the securities ecosystem caused by stricter Sebi orders and clients looking to wrap up matters faster through settlement. Sebi received 703 settlement applications in FY25, a 62% jump from FY24, while settlement collections jumped to ₹798.9 crore from ₹94.5 crore a year earlier. At the same time, appeals filed before SAT fell to 523 from 821. According to Mint, many clients now view settlements as a commercially sensible option, particularly when legal costs and uncertainty of prolonged litigation outweigh potential benefits of an appeal. Sidharth Kumar, senior associate at BTG Advaya, noted that in cases with lower probability of winning, clients prefer paying penalties or settlement instead of paying legal fees for prolonged litigation.
The regulator's investigative capabilities have significantly expanded to support this shift. Sebi's investigations department has grown from a handful of divisions in 2023 to three investigation verticals comprising 23 divisions by 2025. As reported by Mint, Sebi orders are getting more compact and strong, with investigations now intense and supported by technology. Akshaya Bhansali, managing partner at Mindspright Legal, observed that such a framework makes it difficult to defend cases, leading clients to prefer settling or paying penalties. A Mint analysis shows that matters with penalties over ₹1 crore have reduced, with only two final orders with penalties between ₹1 crore and ₹4 crore since January 2026, compared to four orders with penalties between ₹1 crore and ₹60 crore in the same period in 2025.
