Regulatory bodies are those independent bodies that are established by the Government of India, to set standards in any specific fields and to supervise, operate and enforce the given standard accordingly. These agencies need not function under the direct executive supervision of the authorities.
The major functions of regulatory bodies are given below,
- Guiding and Regulations.
- Reviewing and Assessment
- Licensing
- Inspection
- Corrective actions
- Enforcement
Some of the regulatory bodies in India are as follows
- NABARD (National Bank for Agricultural and Rural Development)
- SEBI (Securities and Exchange Board of India)
- RBI (Reserve Bank of India)
- TRAI (Telecom Regulatory Authority of India)
- IRDAI (Insurance Regulatory and Development Authority of India)
- SIDBI (Small Industries Development Bank of India)
- NHB (National Housing Bank)
- CCI (Competition Commission of India)
- FSSAI (Food Safety and Standards Authority of India)
- DCGI (Drug Controller General of India)
- NPPA (National Pharmaceutical Pricing Authority)
- PNGRB (Petroleum and Natural Gas Regulatory Board)
- PFRDA (Pension Fund Regulatory and Development Authority)
- DGH (Directorate General of Hydrocarbon)
- DGFT (Directorate General of Foreign Trade)
NABARD (National Bank for Agricultural and Rural Development)
From an early age, the Government of India has been clear about the necessity of institutional credit and the enhancement of the rural economy. This led to the formation of the regulatory body called NABARD (National Bank for Agricultural and Rural Development), approved by the Parliament of India in 1981, through Act 61. The major functions of the body are as follows:
- Development bank of the country
- Foster rural prosperity and sustainability
- Rural development through financial and non-financial technology and innovations
- Institutional development in securing prosperity
- Promote equitable and sustainable agriculture.
Headquarters – Mumbai, Maharashtra
Chairman – Shri Suchindra Misra
SEBI (Securities and Exchange Board of India)
SEBI was constituted in the country in 1988 as a non-statutory body through the resolution passed by the government of India on April 12. These entities help in raising funds from various sources and in corporate fields and given powers on January 30, 1992 through the SEBI Act, 1992. The major functions of the body are as follows:
- Function as financial intermediaries
- Regulatory and protective functions
- Functions as investors
- Helps in the prevention of malpractices
- Protect the investors
Headquarters – Mumbai, Maharashtra
Chairperson – Ms. Madhabi Puri Buch
RBI (Reserve Bank of India)
RBI is the nation’s central bank and is the regulatory body which is responsible for the regulation of India’s banking system. It commenced its operations on 1 April 1935 in accordance with the Reserve Bank of India Act, 1934.The ownership of the bank belongs to the Ministry of Finance. The major functions of the body are as follows:
- Supervision and regulation of banking and non-banking financial institutions and their credit information
- Monetary policy
- Cash and debt management of Central and State banks
- Development roles, including research and statistics
- Currency management
- Foreign exchange management and capital account management (from banker to banks)
- Supervision of payment and settlement systems
Headquarters – Mumbai, Maharashtra
Governor – Shri Shaktikanta Das
TRAI (Telecom Regulatory Authority of India)
TRAI is a regulatory body that is set up by the Indian government under section 3, Telecom regulatory authority of India act (1997). The major functions of the body are as follows:
- To recommend the timing for the introduction of service providers and the terms and conditions regarding the license of the same.
- To ensure the interconnection between various service providers and their technical compatibility.
- To promote efficiency and growth in operations and telecom services.
- To protect the interest of consumers and proper inspection of the equipment in the network.
- To provide advice to the government regarding matters of the telecom industry.
- To perform financial function and administration entrusted to the Central government.
Headquarters – New Delhi
Chairman – Dr P.D. Vaghela
IRDAI (Insurance Regulatory and Development Authority of India)
IRDAI was established under the Insurance Regulatory and Development Authority Act, 1999 by the government of India. The major functions of the body are as follows:
- To safeguard the interests of the policyholders.
- To regulate the insurance industry and ensure financial soundness by strict application of the laws.
- Frame the regulations periodically.
- To ensure proper implementation of the provisions under the insurance act.
- Ensure just and fair treatment and judgments of the policyholders.
Headquarters – Hyderabad
Chairman – Shri Debasish Panda
SIDBI (Small Industries Development Bank of India)
SIDBI is considered the apex body for regulating the micro, small and medium finance companies in the country. It was established in 1989,through an Act of Parliament.It also regulates the overall licensing of these enterprises. it works under the Ministry of Finance. The major functions of the body are as follows:
- To facilitate the credit flow to MSMEs
- To address developmental and financial gaps in MSMEs
- To facilitate the upgradation and modernization of technology in financial companies.
- To regulate financial aid to MSMEs and also refinancing banks
Headquarters – Lucknow
Chairman – Shri Sivasubramanian Ramann
NHB (National Housing Bank)
NHB is one of the apex regulatory bodies of the country which regulates the overall licensing of the housing companies in India. It was established in 1988 under National Housing Bank Act, 1987. It comes under the jurisdiction of the Ministry of Finance. The major functions of the body are as follows:
- To ensure that the housing finance companies have met their capital requirements.
- Raising the funds for housing finance companies on large scale.
- Regulation and supervision of the country’s housing finance companies.
- Risk management and proper governance practices of the housing companies.
Headquarters – New Delhi
Managing Director – Shri Sarada Kumar Hota
CCI (Competition Commission of India)
CCI is the apex regulatory body of national competitions in India. It is jurisdiction under the Ministry of Corporate Affairs and is responsible for enforcing the Competition Act, 2002 to promote competition and prevent activities that have an appreciable adverse effect on competition in India. The major functions of the body are as follows:
- To eliminate those practices that can create adverse effects on competition.
- To secure consumer interest and promote welfare.
- To create public awareness and training.
- To ensure that no enterprise abuses are taking place through supply control or purchase price manipulation.
- To ensure that foreign companies are abiding by the rules of the competition.
- Smooth alignment of competition and regulatory laws.
Headquarters – New Delhi
Chairman – Shri Ashok Kumar Gupta
FSSAI (Food Safety and Standards Authority of India)
FSSAI is a statutory body of the government of India, which is jurisdiction under the Ministry of Health and Family care. It is established under the Food Safety and Standards Act in 2006. The major functions of the body are as follows:
- To frame the standards and guidelines related to food articles and other appropriate systems
- To provide technical support to Central and State governments regarding rules and policies in food safety and nutrition.
- Framing guidelines for the accreditation of laboratories and providing notifications.
- Create awareness regarding food standards and safety.
- Collection of data regarding contaminants in food, food consumption, and identifying alert systems and emerging risks.
- To provide training programs to individuals and originations in the food business
Headquarters – New Delhi
Chairperson- Shri Rajesh Bhushan
DCGI (Drug Controller General of India)
DCGI is the head of the department of CDSCO or Central Drugs Standard Control Organization, Government of India. The major functions of the body are as follows:
- To approve licenses of categories under drugs, vaccines, IV fluids, and blood products in India.
- Framing the standards for drugs.
- To check the quality of drugs imported into the nation.
- To coordinate various activities for the drug control organizations.
- To recommend a ban on drugs that are harmful under Section 26A of the drugs and cosmetics Act.
- To conduct clinical trials of various drugs.
Headquarters – New Delhi
Chairman- Dr. V.G. Somani
NPPA (National Pharmaceutical Pricing Authority)
NPPA is a regulatory body under the Government of India which controls the prices of pharmaceutical drugs. The major functions of the body are as follows:
- To implement the price control and provisions of drugs.
- To supervise the availability and shortages of drugs.
- Collect and maintain the data on imports and exports of drugs.
- To sponsor and undertake proper research and studies of pricing pharmaceuticals.
- To deal with legal matters regarding the decisions of authority.
- To render advice and assistance to the central government regarding drug policy.
Headquarters – New Delhi
Chairman- Shri Kamlesh Kumar Pant
PNGRB (Petroleum and Natural Gas Regulatory Board)
PNGRB was constituted under Petroleum and Natural Gas Regulatory Board Act, 2006. The major functions of the body are as follows:
- To maintain the information regarding the activities related to natural gas, petroleum, and petroleum products.
- To lay down the safety standards related to the infrastructure and construction of pipelines and safety measures regarding petroleum products.
- To levy fees following the rules and regulations.
- To foster trade and protect consumer interest.
- To establish gas terminals and storage facilities.
- To regulate the transportation costs of contract carriers.
Headquarters – New Delhi
Chairman– Vacant since 4th December 2020 (Last Chairman Shri Dinesh K Sharaf)
PFRDA (Pension Fund Regulatory and Development Authority)
PFRDA comes under the jurisdiction of the Ministry of Finance which supervises the regulation of pensions in India approved by the Act of Parliament. The major functions of the body are as follows:
- To promote and regulate pension funds.
- To protect the interests of the pension fund subscribers.
- To resolve the conflicts within intermediaries.
- To educate the importance of pensions during old age.
- Train various intermediaries about the functioning of pension schemes.
- To address grievances related to the scheme.
Headquarters – New Delhi
Chairperson- Shri Supratim Bandyopadhyay
DGH (Directorate General of Hydrocarbon)
DGH is a governmental regulatory body that is constituted under the Ministry of Petroleum and Natural Gas. It was established in 1993. The major functions of the body are as follows:
- To advise governmental institutions regarding the relinquishment of acreage.
- To advise the ministry of petroleum and natural gas regarding the production policies and exploration strategies.
- To evaluate hydrocarbon reserves that are discovered.
- To examine the storage and preservation of reservoirs.
- To provide technical advice to the concerned ministry and assist them in management functions.
Headquarters – New Delhi
Director General- Shri S.C.L. Das
DGFT (Directorate General of Foreign Trade)
DGFT is constituted under the Ministry of Commerce and Industry, Government of India. The major functions of the body are as follows:
- It administers laws in foreign trade.
- Implement various foreign and trade policies.
- Frame norms and standards for input and output.
- Allocate tariff rate quota.
- Licensing the imports and exports.
- To assist state governments and bodies to develop and improve infrastructure for exports.
- Financial aid for marketing and funding for export promotion councils.
Headquarters – New Delhi
Director General- Shri Amit Yadav
Regulatory bodies are supposed to undertake self-evaluation once in three years (at least), to propose conclusions for appropriate discussions and debate. Functional autonomy should be reinforced along with financial autonomy where regulatory organizations need not depend on the government for financial support. There is also the necessity to encourage certain ethics of transparency and accountability in the functional autonomy of these bodies. The head of the regulatory bodies is to be appointed most transparently and Regulatory Impact Assessments which are adopted by other countries in regulating these bodies can be mandated in India to preserve the economic value.
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