GS2 (Statutory, regulatory and various quasi-judicial bodies)
There are many regulatory bodies in India, such as SEBI, TRAI etc. Why are they necessary? Discuss issues relating to their independence given that the government appoints their heads and there may be a conflict of interest.
Best answer
Ashutosh Namdeo wrote the best answer for this question and got a score of 4.5/10 (if the best answer is an image, it cannot be uploaded here, hence scroll down to see those). The answer is being reproduced below for everyone’s convenience. Of course these answers can always be improved. (Best answer of a particular only involves those given on that day, later answers may not have been checked)
Legislators India acknowledging the importance of regulation has enacted many law establishing regulator for various sectors. Regulation serve following purposes–
a)it makes governance comprehensive
b)protects consumer interest in case of monopoly or otherwise
c)ensure growth path is sustainable
d)resolution of dispute between companies
e)issue guidelines in sync with global best practices
f)facilitate mergers and acquisitions
g)governance of entity during the transition period in case of default of entity
Many regulators such as SEBI, RBI, TRAI, FSSAI etc. have been established in India
Vigilance of sebi has been lauded by many in recent Sahara case. RBI has been playing a key role in containing the inflation and restructuring of banks. Competition commission of India has effectively carried out its mandate, recently it imposed penalty on cement companies for attempting cartelisation. FSSAI approval of food product is assurance of their safety.Independence of regulator—
a)no political interference
b)prompt decision making, effective management
c)better monitoring and targeting of guidelines
However too much freedom to regulator can backfire in following ways–
a)conflict between regulator and executive thus burdening already burdened judiciary
regulator going out of its jurisdiction
b)Regulator may seek favour from particular entity
c)security of nation may be compromised
d)regulator will not be liable to respond to immediate public crisis as it may continue to follow its long term strategy in such a situation
There is a need to strike a balance as a regards the powers of regulators
