The Public Accounts Committee (PAC) has launched a suo-motu initiative to assess the effectiveness of key regulatory bodies like the Securities and Exchange Board of India (SEBI) and the Telecom Regulatory Authority of India (TRAI). This review aims to optimize the use of public funds and strengthen government oversight. The move follows a political controversy concerning allegations of conflict of interest involving the SEBI chief. The PAC has selected five topics for suo-motu investigations, including the performance of regulatory bodies created by Parliament and the regulation of fees, tariffs, and charges on public infrastructure and utilities.
What is the Public Accounts Committee (PAC)?
- Overview:
The PAC is a Parliamentary committee tasked with auditing the government’s revenue and expenditure. It derives its authority from Articles 105 and 118 of the Indian Constitution. It is one of the three major Financial Parliamentary committees, alongside the Estimates Committee and the Committee on Public Undertakings. - Historical Context:
The PAC was established in 1921 following its mention in the Government of India Act, 1919 (Montford Reforms). It is constituted annually under Rule 308 of the Rules of Procedure and Conduct of Business in the Lok Sabha. - Composition:
The PAC consists of 22 members—15 elected by the Lok Sabha Speaker and 7 by the Rajya Sabha Chairman, serving a term of one year. The Speaker of the Lok Sabha appoints the committee’s Chairman. - Powers and Functions:
The PAC examines the government’s financial accounts, including those of various Ministries and autonomous bodies, and reviews CAG (Comptroller and Auditor General) Audit Reports on revenue and expenditure. The CAG supports the committee in its investigations.
The PAC can make recommendations, but these are advisory and not binding on the government.
What are Regulatory Bodies in India? Regulatory bodies in India are autonomous government agencies established to set and enforce standards within specific sectors. These bodies may operate with or without direct government supervision and are responsible for creating regulations, conducting inspections, issuing licenses, and enforcing standards.
Examples of Key Regulatory Bodies: - Securities and Exchange Board of India (SEBI)
- Established: 1992
- Headquarters: Mumbai
- Role: SEBI regulates the securities market, ensures investor protection, and maintains market integrity.
- Structure: Comprises a Board of Directors with a Chairman, along with whole-time and part-time members. Appeals are managed by the Securities Appellate Tribunal (SAT), with further appeals to the Supreme Court.
- Functions: SEBI drafts regulations, conducts inquiries, imposes penalties, and oversees venture capital, mutual funds, and addresses fraudulent market practices.
- Telecom Regulatory Authority of India (TRAI)
- Established: 1997
- Headquarters: New Delhi
- Role: TRAI regulates telecom services, revises tariffs, ensures service quality, and advises the government on telecom policy.
- Structure: Comprises a Chairperson and up to two whole-time and two part-time members. Appeals are handled by the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT).
- Functions: TRAI oversees tariffs, service quality, and market regulation in the telecom sector.
Other Regulatory Bodies: India has several other key regulatory agencies, including the Reserve Bank of India (RBI), National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), Food Safety and Standards Authority of India (FSSAI), Central Drugs Standard Control Organisation (CDSCO), and the Competition Commission of India (CCI). These agencies play a crucial role in regulating sectors such as banking, agriculture, food safety, pharmaceuticals, and competition.
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