Statutory Regulators- Background, Purpose & Challenges

In the recent times, a spate of financial scams and frauds have led to questions being raised about whether SEBI has failed in regulating the Indian capital market. However, SEBI isn’t the only statutory regulator taking heat for its shortcomings. This calls for a look into how statutory regulation is faring in India.

Background:

• Statutory regulators are government agencies, created and empowered by law, to oversee and enforce regulatory requirements in a particular sector.
• Establishment of these bodies is considered as one of the most significant reforms in governance over the last century.
• These agencies have emerged as an alternate mode of governance and the current times is seeing an increase in their popularity around the world.