Regulatory body

Polity & Governance glossary

Also called: Independent regulator · Topic: Statutory, Regulatory and Quasi-judicial Bodies · NCERT: Beyond NCERT

Meaning

A regulatory body is an agency set up by an Act of Parliament to watch over one sector of the economy. It gives licences, sets standards, makes rules and settles disputes in that sector. It is kept at arm's length from the government, which means ministers do not run it day to day, so experts can make fair decisions. These bodies grew after 1991, when the Indian state moved from running businesses to setting rules for them. One body makes rules, enforces them and decides cases. That mixes quasi-legislative, quasi-executive and quasi-judicial roles (law-like, government-like and court-like work), which strains the separation of powers. For that reason, appeals against regulators go to specialist tribunals.

Example

The Securities and Exchange Board of India was set up in 1988 and given statutory status by the SEBI Act 1992. It regulates securities markets, protects investors and acts against insider trading. Appeals against its orders go to the Securities Appellate Tribunal (SAT) and then to the Supreme Court.

Don't confuse with

  • Executive body (e.g., NITI Aayog): set up by a government resolution, not by a law. It only advises, and the government alone can reshape or close it.
  • Investigative agency (e.g., CBI, ED): it probes crimes. It does not license or set standards for a sector.

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