Contents

1. Introduction 111

1.1. Background 111

1.2. Need for Regulation 111

2. Regulation in India 112

2.1. Evolution of Regulation in India 112

2.2. Types of Regulation in India 113

2.3. Categories of Regulators in India 114

2.3.1. Statutory Independent Regulatory Agencies 114

2.3.2. Self Regulatory Authorities 115

2.4. Issues Related to Regulation in India 115

2.4.1. Administrative Incoherence 115

2.4.2. Structural Weakness 115

2.4.3. Design of the regulatory bodies 115

2.4.4. Outdated Legal Framework 116

2.4.5 Not aligned to global standards 116

2.5. Important Regulatory Bodies 116

2.5.1. Reserve Bank of India 116

2.5.2. Securities and Exchange Board of India 118

2.5.3. Insurance Regulatory and Development Authority 121

2.5.4. Competition Commission of India 123

2.5.5. Telecom Regulatory Authority of India (TRAI) 124

2.5.6. National Pharmaceuticals Pricing Authority National Pharmaceutical Pricing Authority 125

2.5.7. Insolvency and Bankruptcy Board of India 125

2.5.8. Atomic Energy Regulatory Board 126

2.5.9. Central Electricity Regulatory Board 126

2.5.10. Food Safety and Standard Authority of India 127

2.6. Interaction between Policy Makers and Regulators and its Current Status 127

2.7. Participation of Stakeholders in the Regulatory Process 128

2.8. Competition Authority vs. Sector Regulators 129

2.9. Regulatory Authorities: Consumer Redress 129

2.10. Regulatory Coherence in India 129

3. Fiscal Sector Legislative Reforms Commission (FSLRC) 130

3.1. Comments Relating to Independence of Regulatory Bodies 131

3.2. Recommendation with Regards to Accountability 131

4. Recommendations of 2nd ARC 131

5. Single Super-Regulator vs. Multiple Regulators 134

5.1. Arguments in favor of Unified Supervision 134

5.2. Arguments against Unified Regulation 134

6. Future Course of Action 135

7. UPSC Previous Years Questions 136

8. Test Series Questions 136