Regulatory Bodies

Regulatory Bodies	A body with its own power and responsibilities given under public law which is organisationally separate from the ministries and is neither directly elected or manage by directly elected representative
Why or need?	To guarantee level playing field for public and private agencies and to ensure their independence from government department Significance Does not have to share social obligation of the democratic government Unaffected  : by interest group Expertise : matching the complexity of the task Response : Can easily modify any regulation swiftly Legal certainty: in case of political instability
Issue	Accountability vs Independence of Regulatory bodies
Present mechanism of oversight of regulatory bodies	Parliamentary Question hour, discussion, debate, committees, reports But most are unable to ensure effective and direct oversight For e.g. FMC's after merged with SEBI oversight have been diminished
Functions	Economy Preventing Market Failure : SEBI, RBI Fair Competition CCI Monetary Policy RBI Development of Market like SEBI Fair Play and Consumer Protection FSSAI, TRAI Increasing Efficiency AERB Prevent Externalities NGT, CBFC, CPCB Promote Public Interest
Issues	Independence From government as well as from interest groups, corporate Accountability No direct accountability  (ministries, very few question discussed) Lack of enforceability No annual report Transparency Required as Rule and regulation are made by them (unelected) Effectiveness FASSI not able to enforce the food safety regulations Overlapping domains SEBI and IRDAI over Universal Life Insurance Plan RBI and CCI in merging of Banks Regulatory Sprawl Over regulation 2nd ARC : Regulation where necessary only
Way forward	FSLRC (B N Srikrishna) Financial independence (Budgetary approvals, fees and other ) Accountable Consultation with public (TRAI on Net Neutrality) Report to Parliament Transparency Precise objectives Structural Merging (IRDA and PFRDA) Punchhi Committee : Regulator of Regulator Procedural Code of Conduct Appointment Uniformity in Appointment, removal and tenure

Challenges

Solution

Accountability of regulators Since they are independent They fall in the broad definition of executive branch of the state so in away are accountable to legislature but there is a need for streamlining this

Regulators must present before the standing committees to explain their actions and be subjected to legislative questions Submit annual report periodically and these should be accessible to public 2nd ARC: scrutinized by sector specific committees Regular formation of guidelines for their evaluation PC: Parliament committee should be empower to review :  the rules and regulations notified by the regulator a summary of the decisions of the regulators and their compliance disclosure of the method for inviting public opinion the regulator’s recommendations to amend laws, reduce regulatory burdens, paperwork and procedural formalities Other Appointment: process to be made more accountable for example can be subject to ratification by the parliament and not at the discretion of executive(as presently happens) Finance: should be made dependent on the parliament for the budget More skill and resources to the parliamentary committees Problem of conflict among various Regulatory bodies: Establishing a dedicated joint parliamentary committee to over see regulatory bodies Proper mechanism for appeal against regulatory bodies

CCI
Current(example of over regulation )	11 cement companies fined on the charges of Cartelisation by CCI and reversed by COMPAT(Competition Appellate Tribunal )
Competition Act, 2002	Replaced  the archaic Monopoly and Restrictive Trade Practices Act, 1969 CCI was established except J&K
Objectives	To prohibit the agreements or practices that restricts free trading and also the competition between two business entities, To ban the abusive situation of the market monopoly, To provide the opportunity to the entrepreneur for the competition in the market, To have the international support and enforcement network across the world, To prevent from anti-competition practices and to promote a fair and healthy competition in the market.
COMPAT	statutory organization To hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India

National Commission for Minority Educational Institutions (NCMEI)	2005 To ensure rights of minority to establish and administer education institution (Article 30) Linguistic minorities are not covered Quasi-judicial body(power of civil court) 3 roles Adjudicatory Advisory Recommendatory

Quality Council of India	Set up in 1997 by GOI and Indian industry as a autonomous body
Objective	Operate National Accreditation Structure Providing Accreditation in the field of Health, Education and quality control Quality management system and food management system Product certification

BCCI	A society Problems Financial irregulaties Conflict of interest Openness Unethical practice Undemocratic Mis-management and poor governance Politicisation of the body Contempt of court Trust of public Functioning of societies
	Refusing for accountability and transparency Though well governed but they need to take care of what could be the next most serious crisis yet for Indian Cricket
Lodha panel committee  recommendation How game is run in the country How to impart transparency and accountability	Structure One state- one member - one vote Ombudsman (internal Conflict) Ethics officer (Conflict of interest) Electoral officer Governance Decentralisation De-linking BCCI and IPL Bringing under RTI Cooling off period Restricted tenures Others Legalising betting Players' association Government servant and politician to be kept out of cricket administration
Significance	Transparency and Accountability Improving the Sport Governance Setting Up Benchmark
Challenges	Clearance regarding betting (Players, their relatives and association) so proper legislation is required
Way forward	It should have been a rigorous consultative procedure by including all the stakeholders like BCCI, sportsman etc.

FSSAI	Food safety and Standards Authority of India is a statutory body established under Food safety and Standards Act, 2006 laying down science based standards for articles of food and To regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption Ministry of Health and Family Welfare is the administrative ministry for the implementation of the FSSAI
Issues	It will reintroduce system of pre-launch product approval rather than self certification by abiding the guidelines issued by FSSAI (beyond the law : Bombay HC)
	Labs International Standards
Way forward	Over regulation may harm FPIs Fear psychosis of officials (Nestle) Internationally also self certification is followed so status quo required Self Certification
	MoU with Advertising Standards Council of India (regulatory ) to process complaints against misleading advertisements

Independent regulators for professional service	Such as medicine, law, CA, cost accountancy and company sectretrayship.
Ye	Conflict  of interest: Existing structure of regulator-cum-professional body has resultes in several alleged conflict of interest. Hampered India's attempt to secure Mutual Recognition Agreements with other countries to enable easy temporary movement of skilled workers and professionals across borders Commerce ministry has been pitching up for opening up legal, education and health care sector to attract foreign investments

CVC	Main agency of persecuting corruption case Santhanam Committee on Corruption (largely implemented), 1962 Set up CVC (1964)--- Statutory in 2003 Cooling off period Simplification of procedure Vigilance in PSUs Annual declaration of assets Compulsory performance review and pre-mature retirement Supervises CBI Apex vigilance institution
Issues	Indpendence and autonomy Depended on CBI for investigation Appointment : Although based on committee but it has limited options as Search panel is constituted by central government 2011 SC quashed the appoitment of CVC Administrative control of DOPT Power Advisory nature (non-compliance by government) No independent power of prosecution Functioning Delay (more than 3 years) Resources Under staffed and under resourced Poor engagement with civil society
Solution	Select committee should consider all Impeccable integrity and track record Role clarity of CBI and CVC Autonomy and independece equal to CAG Strenthening of Whistle Blower Act
Conclusion	Need for structural, procedural and behavioural reforms

CBI	Supreme Investigation agecny of central government Prevention of Corruption  INTERPOL agency Assisstance to CVC Maintainig integrity Statutory recognistion DSPE Act, 1946 CBI is working at its best : trust of the people It is government interference which is harming its functioning Good officers, professionalism
Issues	Lack of functional, Financial and adminstrative autonomy and independence Regulated and manged by servral agencies MHA,DoPT, UPSC, CVC, ministry of law) Supreme court "caged parrort" Legal power : limited DSPE , Act where CBI can act only after notification of central government Above Joint secretary requires perimission of government Under POCA--- CBI need to take permission sec(19) Government can transfer and appoint any official Political interfrence CBI, IT and ED are used e.g. Lalu Yadav currently , Mulayam and Mayavati , Yedurappa  Constitutionality Guhawati High Court Functioning : misused Bansal case Over-burden and dealy in sanction
	Corruption Charge on Ranjeet Sinha Bansal case Lalu case
Solution	Appointment and Secuirty of Tenure (3 year ) LOKPAL Act, committee of (CJI,PM and LoP) Parliamentary Commitees recommendation Credibility,Impartiality ,Infrastructure,Resources Vineet Narayan case CVC should supervise wrt PCA over CBI Security of two year (min 2 year) Removal of single directive Independence Policy control only (Line of superintendence and interference is very thin) Appointment (broad-based commitee) Financial , functional and adminstrative Autonomy Increase in transparency and accountability Need of New CBI Act with role clarity, jurisdiction and autonomy

Overlapping

CCI Vs TRAI overlapping of regulation in telecom sector CCI has been accused of lagging with expertise in specific matters Issues: Generalist Vs specialist Solution: Taking into consideration various domains and respecting them like competitive and expert domains formal and informal exchanges Inte Sector-specific and general regulator need to have coordination rnational best practices:  fixed arrangement through MoU

CIC	RTI Act, 2005 Decide the appeals regarding information sought by public Adviosry and action body Quasi-judiciary Body
Autonomy	Appointment (PM, LoP, A minister) Fixed tenure Not eligible for reappointment Suo-motu power Power of Civil court Annual report to central government
Issue	Delay and lack of transparency on appointment Pendency of case Denial of directive (6 RTI ) Issue with SIC
Way forward	RTI is crucial to participative democracy Law is good, what is need is better implemetation of it .