Notes on Regulatory Bodies – SEBI, IRDA, CCI, TRAI

Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) is the regulator for securities market in India. It was established on 12th April 1992 through the SEBI Act, 1992. SEBI has to be responsive to the needs of three groups, which constitute the market: the issuers of securities; the investors; the market intermediaries.

Powers: For the discharge of its functions efficiently, SEBI has been vested with the following powers:

• To approve by-laws of stock exchanges
• To require the stock exchanges to amend their by-laws.
• Inspect the books of accounts and call for periodical returns from recognized stock exchanges.
• Inspect the books of accounts of financial intermediaries.
• Compel certain companies to list their shares in one or more stock exchanges.
• Levy fees and other charges on the intermediaries for performing its functions.
• Grant license to any person for the purpose of dealing in certain areas.
• Delegate powers exercisable by it.
• Prosecute and judge directly the violation of certain provisions of the companies Act.
• Power to impose monetary penalties.

An Appraisal: Successful cases of grievance redressal by SEBI have been rising rapidly. However, a survey shows that most of the investors find the redresser ineffective. Moreover, SEBI is not able to do much about ‘fly by night’ or ‘sign-board’ companies who vanish after collecting huge money. SEBI has been too busy in framing rules and regulation giving rise to complex and cumbersome framework, which leaves scope for discretionary interpretation. It failed to punish those who caused abnormal fluctuations in the market. Due to this, small investors are losing confidence in investing. The autonomy of SEBI has been compromised as it, more or less, functions as a branch of the Union Finance Ministry.

Insurance Regulatory and Development Authority (IRDA)
Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body, which regulates and develops the insurance industry in India. It was constituted by Insurance Regulatory and Development Authority Act, 1999.
Powers and functions:

• Issue to the applicant a certificate of registration and suspend or cancel such registration;
• Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;
• Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;
• Promoting efficiency in the conduct of insurance business;
• Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;
• Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee;
• Regulating investment of funds by insurance companies;
• Adjudication of disputes between insurers and intermediaries or insurance intermediaries.

Competition Commission of India (CCI)

Competition Commission of India is a body of the Government of India responsible for enforcing the Competition Act, 2002 throughout India and to prevent activities that have an adverse effect on competition in India. The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and Merger and acquisition), which causes or are likely to cause an appreciable adverse effect on competition within India.
Function and Responsibilities:

• Make the markets work for the benefit and welfare of consumers.
• Ensure fair and healthy competition in economic activities in the country for faster and inclusive growth and development of economy.
• Implement competition policies with an aim to effectuate the most efficient utilization of economic resources.
• Develop and nurture effective relations and interactions with sectoral regulators to ensure smooth alignment of sectoral regulatory laws in tandem with the competition law.
• Effectively carry out competition advocacy and spread the information on benefits of competition among all stakeholders to establish and nurture competition culture in Indian economy.

Telecom Regulatory Authority of India (TRAI)
The Telecom Regulatory Authority of India (TRAI) is the independent regulator of the telecommunications business in India.
Powers and Functions:

• Recommend the need and timing for introduction of new service provider;
• Recommend the terms and conditions of licence to a service provider;
• Ensure technical compatibility and effective inter-connection between different service providers;
• Ensure compliance of terms and conditions of licence;
• Facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services;
• Protect the interest of the consumers of telecommunication service;
• Inspect the equipment used in the network and recommend the type of equipment to be used by the service providers;
• Settle disputes between service providers.

What is difference between constitutional, statutory, extra constitutional, non constitutional bodies?

Constitutional Bodies:

• Framed by (and mentioned) Constitution
• Can not be abolished without consent of the states
• Helps in performing specific functions or duties
• Can be of both permanent or non-permanent type
• Example: Election Commission of India, Union Public Service Commission (UPSC), Finance Commission etc

Statutory Bodies:

• Set up by law which is authorized to enforce legislation on behalf of the relevant country or state
• Mostly found in parliamentary type of government
• Is not defined in the constitution
• Example: National Human Rights Commission, National Commission for Women etc.

Extra Constitutional:

• Established by a resolution (decision) of union cabinet
• Not defined in Constitution of India

Non constitutional:

• Not found in constitution of a country.
• Statutory body can also be called as a non-constitutional body
• Example: NDC, NHRC, CIC etc.

सफलता के बीज मंत्र (Pravachan : Just for Motivation)

महात्मा नित्यानंद ने अपने शिष्यों को बाँस से बनी बाल्टियां पकड़ाकर कहा : जाओ, इन बाल्टियों में नदी से जल भर लाओ। आश्रम में सफाई करनी है। नित्यानंद की इस विचित्र आज्ञा को सुनकर सभी शिष्य आश्चर्यचकित रह गए। भला बाँस से बनी बाल्टियों में जल कैसे लाया जा सकता था! फिर भी, सभी शिष्यों ने बाल्टियां उठाईं और जल लेने नदी तट की ओर चल दिए। वे जब बाल्टियां भरते, तो सारा जल निकल जाता था। 

अंतत: निराश होकर एक को छोड़कर सभी शिष्य लौट आए और महात्मा नित्यानंद से अपनी दुविधा बता दी। लेकिन, एक शिष्य बराबर जल भरता रहा। जल रिस जाता तो पुन: भरने लगता। शाम होने तक वह इसी प्रकार श्रम करता रहा। इसका परिणाम यह हुआ कि बाँस की शलाकाएं फूल गईं और छिद्र बंद हो गए। तब वह बड़ा प्रसन्न हुआ और उस बाल्टी में जल भरकर गुरुजी के पास पहुँचा। जल से भरी बाल्टी लाते देख महात्मा नित्यानंद ने उसे शाबाशी दी और अन्य शिष्यों को संबोधित करते हुए कहा,..

“विवेक, धैर्य, निष्ठा व सतत् परिश्रम से दुर्गम कार्य को भी सुगम बनाया जा सकता है।

सफलता कोई ऐसी वस्तु नहीं है कि आपने माँगा या चाहा और आपको मिल गई। इसे तुंरत प्रस्तुत नहीं किया जा सकता, इसमें लगातार परिश्रम करना होगा। एक कठिन परिश्रमी व्यक्ति ही सफलता पाता है, और अपने कारण पाता है, दूसरों के कारण नहीं। इसीलिए सफल व्यक्ति याद किए जाते हैं।

किसी भी कार्य को पूरी तरह करने के लिए कुशलता के साथ कार्य की निरन्तरता भी आवश्यक होती है। ऐसा नहीं करना चाहिए कि आज किया, फ़िर कुछ दिन आराम करें, फ़िर करें। ऐसा करने से कार्य तो रुकता ही है, वह ठीक तरह से होता भी नहीं क्योंकि एकाग्रता भंग होती है। मन उतना नहीं लगता जितनी उस कार्य को जरुरत होती है, और सफलता भी रुक जाती है, आपके साथी आपसे आगे हो जाते हैं। इसलिए अपने काम को एक रफ़्तार देनी होगी तभी सफलता प्राप्त होगी, आवश्यक समय और प्रयास निरंतर देना होगा।

श्री कृष्ण ने गीता में कहा है- संशयात्मा विनश्यति! अर्थात- जिसमें संशय हो उसका विकास नही होता।

किसी काम को करने के पहले अगर मन में दो तरह के विचार रहते हैं कि करें या न करें, इसे करने से लाभ होगा या नहीं, मन की यह स्थिति असफलता की तरफ़ ले जाती है। काम के पूरा होने से पहले फल की कल्पना करना और कामना करना ग़लत है, ऐसा करने से कर्म करने की कुशलता घट जाती है क्योंकि मन संदेह के घेरे में रहता है। पूरी तरह मन को एकाग्र करके कर्म करने से काम तो कुशलता से होता ही है फल भी अवश्य अच्छा आता है।

याद रखिये जीवन में अपना विवेक ही अपना सच्चा साथी है। अपनी बुद्धि श्रेष्ठ हो, इसका प्रयत्न हमेशा करना चाहिए क्योंकि बुद्धि के द्वारा सब कुछ जीता जा सकता है और सब कुछ पाया जा सकता है।”