Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI

Introduction:

The Indian economy is growing with a robust financial system and functionality. The stringent regulations are one of the reasons for such elevation in the economic platform. The categorized bodies hold variable responsibilities for financial activities. The regulatory bodies in the India system keep an eye-check on the proper functioning and report any financial scam. For this, the bodies regulate various laws and regulations that the citizen has to follow as part of the economic system. Also, the regulatory bodies empower the economic system with various schemes and offers which ensure fruitful outcomes. 

Important Regulatory Bodies:

The Indian economic system has variable bodies which regulate the financial platform with separate and valuable rules. With the distinctive rules, these regulatory bodies in India function at the variable platform of national and state-level organizations. 

The Indian regulation system works with four central pillars of the financial system. These four regulatory bodies maintain the financial systems and look after all the finance-related activities. Let’s look for some details: 

SEBI (security and exchange board of India):

It is a vital part of regulatory bodies in India. The growing IPO market in the country is how SEBI became the regulatory body of the Indian capital market. The SEBI holds the responsibility to maintain the balance in the stock exchange market of India. SEBI incorporated the charge under the SEBI ACT1992. 

Functions of SEBI:

There are many exciting and informative functions of SEBI. According to it, the body regulates the stock market of India. 

Protective functions: 

SEBI regulates the stock market and its trading with all the adjacent aspects in the Indian bank’s regulatory body. These functions include investment protection with interest and the prevention of insider trading techniques. The protective functions of SEBI have the charge to spread awareness against any deception among the investment traders. 

Development functions:

 The SEBI develops the platform of the Indian stock market by promoting the growth aspects of investment securities methodologies. Presently, the department empowers investors’ knowledge to attract foreign investment for economic growth. The SEBI also runs various training programs for investment development and motivates innovation and research.

Powers:

These powers relate to the responsibility for how SEBI became the regulatory body of the Indian capital market to prevent scams and provide the enormous rise in economic growth. 

• SEBI can access all the transaction information from the exchange markets.
• It has the power to reform the laws relative to the functioning of the stock exchange.
• Intermediaries regulation
• SEBI can analyse the case for any malpractice and fraud report.

RBI (reserve bank of India)

The central bank of India established the RBI bank in 1935. The RBI regulates all the monetary functions and policies which act effectively in the Indian market. The RBI has a governor under which all the officers regulate the financial market and monetary funding. 

Functions:

Below are the functions of the RBI according to the regulations and power. The governor of RBI signs the currency notes of India. The function of RBI regulates the Indian monetary structure. 

Functions:

• RBI bank issues the license to all the active banks in India. It has the bank policy according to which each bank body should function and follow the regulation.
• Citizens have their financial accounts in banks. RBI holds the power to manage and check the financial account of the bank. RBI regulates the statement, fund transactions, and all the other details.
• RBI balances the accurate amount of currency supply and regulates it.

IRDAI (insurance regulatory and development authority of India)

The IRDAI functions to regulate the functionality of insurance schemes and policyholder activities. The insurance companies are bound to follow the rules under the RBI and function accordingly. 

Function:

Here is some of the specific function that IRDAI function to regulate the insurance sector of India. Below are the mentions:

• IRDAI grants the license to the insurance companies. It holds the power to cancel and renew the license for functioning.
• It is one of the bodies among regulatory bodies in India which investigates insurance claims and charge severe punishments.
• IRDAI protects the interest of the policyholders with specific laws. 

CCI (completion commission of India):

The competition commission of India became part of regulatory bodies in India and came into function in the year 2009. This regulatory body manages the competition act 2002 with its implementation and enforcement of the competition act.

Functions:

Below are the functions of CCI as an Indian bank regulatory body.

• The CCI promotes sustainable competition in the market.
• This regulatory body can eliminate market-affecting practices for declining values.

Conclusion:

These are the details regarding the powers and functions of the regulatory bodies of India. All the regulatory bodies are helping the citizens in managing their finances through strict regulation. The SEBI holds the platform to protect the stock market, and RBI manages the monetary funds. IRDAI regulates insurance policies, and CCI manages the market competition. All the regulatory bodies connect to maintain the economic growth of the country. Citizens trust these bodies and invest in various sectors to boost the country’s economy, and these bodies track the specific malfunction activities.