Regulatory Nexus

Nature: Statutory body, established in 1988 and given statutory powers through the SEBI Act, 1992.

Mandate: To protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Functions:

• Regulating stock exchanges and any other securities markets.
• Registering and regulating working of stock brokers, sub-brokers, share transfer agents, merchant bankers, etc.
• Registering and regulating collective investment schemes (like mutual funds).
• Prohibiting fraudulent and unfair trade practices relating to securities markets.
• Promoting investor education and training of intermediaries.
• Prohibiting insider trading in securities.
• Regulating substantial acquisition of shares and takeovers of companies.

Significance: A key regulator for the Indian capital market, ensuring its integrity, efficiency, and investor confidence.

Nature: Statutory body, established in 1999 by the IRDAI Act, 1999.

Mandate: To protect the interests of policyholders, to regulate, promote, and ensure the orderly growth of the insurance and re-insurance industry in India.

Functions:

• Issuing certificate of registration to insurance companies.
• Protecting the interests of policyholders.
• Specifying qualifications, code of conduct and training for insurance intermediaries.
• Regulating investment of funds by insurance companies.
• Adjudicating disputes between insurers and policyholders.

Significance: Oversees the massive and vital insurance sector, ensuring consumer protection and financial stability.

Nature: Statutory body, established in 1997 by the TRAI Act, 1997.

Mandate: To regulate the telecommunication services and for matters connected therewith or incidental thereto. Its objective is to create and nurture conditions for fair competition among service providers and to protect the interests of consumers.

Functions:

• Making recommendations on introduction of new service providers.
• Ensuring compliance of terms and conditions of license.
• Laying down quality of service standards.
• Fixing the rates at which telecom services are provided.
• Resolving disputes between service providers.
• Promoting competition and efficiency in the operation of telecommunication services.

Significance: Regulates one of the largest and most dynamic telecom markets globally, impacting connectivity and digital transformation.

Nature: Statutory body, established in 2003 (initially as interim body) and given statutory powers through the PFRDA Act, 2013.

Mandate: To promote old age income security by establishing, developing and regulating pension funds and to protect the interests of subscribers to schemes of pension funds.

Functions:

• Regulating the National Pension System (NPS).
• Protecting the interests of subscribers.
• Appointing various intermediaries (pension funds, central recordkeeping agency, etc.).
• Specifying norms for investment of funds by pension funds.
• Promoting pension literacy and education.

Significance: Regulates India's nascent but growing pension sector, crucial for long-term financial security for the elderly population.

Nature: Statutory body, established in 2003 under the Competition Act, 2002. Became fully functional in 2009.

Mandate: To promote and sustain competition in markets, to prevent practices having an appreciable adverse effect on competition, to protect the interests of consumers, and to ensure freedom of trade.

Functions:

• Prohibiting anti-competitive agreements (e.g., cartels, bid-rigging).
• Prohibiting abuse of dominant position by enterprises.
• Regulating combinations (acquisitions, mergers, amalgamations) that might cause an appreciable adverse effect on competition.
• Undertaking competition advocacy, creating public awareness, and imparting training on competition issues.

Significance: A crucial regulator in a developing economy, ensuring fair market practices and preventing monopolies, fostering efficiency and consumer welfare.

Nature: Statutory body, established in 2008 under the Food Safety and Standards Act, 2006.

Mandate: To lay 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.

Functions:

• Formulating regulations and guidelines for food standards, licensing, and registration.
• Laying down procedures and guidelines for accreditation of laboratories.
• Providing scientific advice and technical support to the Central and State Governments.
• Promoting general awareness about food safety and standards.
• Enforcement of food safety regulations.

Significance: A vital body for public health, ensuring food safety and quality across the food supply chain from farm to fork.

Nature: Statutory body, established on April 1, 1935, under the Reserve Bank of India Act, 1934.

Mandate: Monetary policy formulation, regulation and supervision of the banking and non-banking financial sector, management of foreign exchange, issuance of currency, and development functions.

Functions:

• Monetary Authority: Formulates, implements, and monitors the monetary policy.
• Regulator and Supervisor of the Financial System.
• Manager of Foreign Exchange.
• Issuer of Currency.
• Banker to Government.
• Banker to Banks.

Significance: The central bank of India, paramount for maintaining financial stability, price stability, and economic growth.