New Delhi: In the wake of recent scams and crises, Member of Parliament Rajeev Chandrasekhar has asked Finance Minister Arun Jaitley to review existing regulatory bodies to ensure their independence, accountability as well as unbiased and transparent functioning.
There is an urgent need to review existing regulatory bodies, including a focus on criteria and process to ensure that all regulators are independent, which should cover the process of selection and members, Chandrasekhar wrote in a letter to Jaitley.
A modern, competitive set of commercial terms of employment and perquisites for members of these regulatory bodies, he said.
The recent payment crisis at the National Spot Exchange Ltd (NSEL) was an example of "poor oversight" and regulation, he said.
This added to the already severely impaired and "adversely affected credibility of the Indian finance sector" - on the back of recent allegations of money laundering by public and private banks and, the depreciation of the rupee, he added.
According to Chandrasekhar, a process should be in place to ensure accountability of regulators and their transparent and unbiased functioning and they should be given financial independence and budgeting.
The budgeting for the regulators should be non-lapsable for the duration of a plan period, he added.
Defining the precise relationship between the administrative ministry and the sectoral regulator should also be a focus area, Chandrasekhar said.
He said these crises have hit the areas that still need investment and growth.
"...And are holding back the growth of various sectors such as telecom, transportation, energy, finance - all critical to establishing India on a path of sustainable growth," said Chandrasekhar, who is a Member of the Standing Committee on Finance.
"I request that the government undertake a comprehensive review of independent regulators, through a wide, multi-stakeholder consultation, including amendments of laws/statutes and creating more independence and development of a new cadre of regulators that are distinguished by their independence, integrity and competence," he wrote in the letter.
Also, he said government must consider implementing the recommendations of the Administrative Reforms Commission to make bureaucrats "more accountable and responsive".
