INDIAN FINANCIAL REGULATORS | FINANCIAL REGULATORY BODIES IN INDIA

INDIAN FINANCIAL REGULATORS | FINANCIAL REGULATORY BODIES IN INDIA

Indian financial sector consists of commercial banks, insurance companies, non-banking financial companies, cooperatives, pensions funds, mutual funds, capital market and intermediaries etc. in order to assure the proper functioning of all these financial organisations and institutions we need regulatory bodies to regulate and supervise these institutions.

  Regulation and supervision is most important aspect of a financial system. a financial regulator establishes certain rules and policies that governs the financial system of a country. it controls financial activities and maintain financial stability in the country. it is essential for economic growth of the country.

Main objectives of the indian fiancial regulatory bodies are 

1. Sustaining confident in financial market.
2. Ensures consumer protection.
3. Creating public awareness.
4. Reducing financial crimes and frauds.

The regulation and supervision of the financial system in India is carried out by different regulatory authorities.

1. Securities and Exchange Board of India  (regulates The capital market, mutual funds, and other capital market intermediaries)
2. Reserve Bank of India (Regulates  Banks and NBFCs)
3. Ministry of Finance (Deals with economy of india, central and state finance, Treasury, taxation,etc)
4. Insurance Regulatory Authority of India (regulates insurance companies)
5. PFRDA (Regulates pension funds)

NOTE :The Forward Markets Commission (FMC) was the chief regulator of commodity futures markets in India. On 28 September 2015 the FMC was merged with the Securities and Exchange Board of India (SEBI).

There are other government bodies which perform quasi-regulatory functions. those are,

1. National Bank for Agriculture and Rural Development (NABARD)
NABARD supervises State Cooperative Banks (StCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks (RRBs) and conducts statutory inspections of these banks.

2. Small industrial Development Bank of India (SIDBI)
Regulates state finance corporation.

3. National Housing Bank (NHB)
Regulates housing finance companies.