Regulatory bodies or Regulatory agencies are government authorities tasked with enforcing and establishing standards in certain fields of activity or operations. Regulatory Bodies are set up Government to Establish technical, and quality standards, safety, guide, monitor, and control various sectors such as health, insurance, banking, education, and transport.
In India, each sector has its regulating agency. Some examples of regulating bodies are FSSAI, RBI, SEBI, IDBI, and BCCI. In India, there are 30+ regulating bodies.
Functions of Regulatory Bodies
1. Licensing
2. Taking corrective actions
3. Ensures smooth running
4. Review and assessment
5. Inspection or audit
6. Regulates and guides
7. Providing assistance
8. Provides functional autonomy to provide investment and shield them from interference
9. Ensures a free and fair market
The main advantage of regulatory bodies is it helps to shape the relations between citizens, state, and businesses. An effective regulatory policy supports economic development.
Disadvantages of Regulatory bodies
1. Ineffective review system
2. Selection of non-experts
3. Population pressure
4. Overlapping powers
Now let’s see some of the Regulatory Bodies in India
1. SEBI – Securities of Exchange Board OF India
2. RBI – Reserve Bank of India
3. NABARD – National Bank for Agriculture and Rural Development
4. NHB – National Housing Banks
As these are only a few examples in India, there are around 30+ Regulatory Bodies.
CONCLUSION:
In a Globalized world, it is important to have regulatory bodies for a smooth economy.
I hope you all understand the term Regulatory Bodies. Comment if I miss anything 😛
