UPSC Mains 2015 · GS II · Q16 · 12.5 marks · 200 words

“For achieving the desired objectives, it is necessary to ensure that the regulatory institutions remain independent and autonomous.” Discuss in the light of the experiences in recent past.

हिन्दी में

‘‘वांछित उद्देश्यों की प्राप्ति के लिए यह सुनिश्चित करना आवश्यक है कि विनियामक संस्थाएँ स्वतंत्र और स्वायत्त बनी रहें।’’ पिछले कुछ समय में हुए अनुभवों के प्रकाश में चर्चा कीजिए।

Statutory and Regulatory Bodies

How a topper answered the closest question

Toppers wrote this one in a test series: “Institutional autonomy of sectoral regulators is critical for ensuring credibility, transparency, and fair competition. In light of recent incidents, examine the issues pertaining to the independence and autonomy of regulatory bodies in India.”

Pakshal SecretryAIR 8 · CSE 2025 · 200 wordsTheir whole copy

Opening · a recent event

Recently SEBI Chief was accused of conflict of interest and favouritism leading to demand for autonomy of sectoral regulators.

Body · points

Issues

Ⓐ Independence

  1. political appointment e.g SEBI
  2. No own funding → depend on centre
  3. Interference in decision making e.g finance Ministry in IRDAI.
  4. Non-independence regarding appointment of staff and functions e.g RBI Recruitment by ministry

Ⓑ Autonomy (5) Government direction to bodies → Resignation of Urjit Patel in 2018 from RBI (6) Not allowed to take own decision (7) Overlapping of functions → IRDAI & SEBI on ULIPs

Ⓒ Other Issues (8) Fragmented Regulation (9) No uniform guidelines → Sector specific rules (10) proliferation of regulators → New regulators like TRAI, CCI, etc. (11) frequent changes in regulation → SEBI guidelines changes every 3-4 months

Way forward

Ⓐ Financial Sector Reform Committee

  1. Unifed financial Regulator for all sector.
  2. uniform regulation for ease of compliance

Ⓑ Other Reforms 3. Autonomy and independence of regulator. 4. Reducing government influence in appointment and decision 5. Merit Based selection for regulatory role 6. Specialised lateral entry for regulatory Role

Close · a source

Economic Survey 2024-25, thus made "de-regulation" as core theme and called for "Regulatory Impact Asserment" to be mandatory.

3 more toppers’ answers to this question, part by part, and how they all approached it: open the question.

Toppers’ answers to other close questions

Source: UPSC, Civil Services (Main) Examination 2015, General Studies Paper II, Q16. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.