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PAC to Hold Performance Review of Regulatory Bodies

Last updated on September 6th, 2024 Posted on September 6, 2024 by NEXT IAS Current Affairs Team  595

Syllabus: GS2/ Polity and Governance

Context

  • The Public Accounts Committee (PAC) will hold a performance review of “regulatory bodies established by Act of Parliament”, such as the Securities and Exchange Board of India (SEBI). 

About

  • The decision came amid a political storm over the allegations of conflict of interest against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch. 
  • The panel has picked five subjects for suo motu investigations, including “performance review of regulatory bodies established by Act of Parliament” and “levy and regulation of fees, tariffs, user charges etc. on public infrastructure and other public utilities”. 

Public Accounts Committee

  • The committee was set up first in 1921 under the provisions of the Government of India Act of 1919.
  • It consists of 22 members, 15 from the Lok Sabha and 7 from the Rajya Sabha. 
  • The members are elected by the Parliament every year from amongst its members according to the principle of proportional representation by means of the single transferable vote. 
  • A minister cannot be elected as a member of the committee. The term of office of the members is one year. 
  • The function of the committee is to examine the annual audit reports of the Comptroller and Auditor General of India (CAG), which are laid before the Parliament by the President. The reports are;
    • Audit report on appropriation accounts, 
    • Audit report on finance accounts and
    • Audit report on public undertakings.
  • In addition, the Committee can also select one or more suo motu subjects for in-depth examination during the year.
Securities and Exchange Board of India (SEBI)
– Origin: The Securities and Exchange Board of India was constituted as a non-statutory body in 1988 through a resolution of the Government of India.
1. In 1992 it was established as a statutory body under the provisions of the Securities and Exchange Board of India Act, 1992.
Governance: SEBI is managed by its board of members, which consist of the following people;
1. The chairman, who is nominated by the Union Government of India.
2. Two members from the Union Finance Ministry.
3. One member from the Reserve Bank of India.The remaining five members are nominated by the Union Government of India, and out of them at least three should be whole-time members.
Functions of SEBI
– Market Regulation: As the watchdog for the Indian Capital Market, it prescribes the conditions for issuer companies to raise capital from the public so as to protect the interest of the investors.
– Market Development: It takes measures to widen and deepen the securities markets by bringing changes in the micro and macro structures of the market.
– Enforcement of Regulatory Norms: It ascertains compliance with its norms by carrying out inspections of registered intermediaries, and investigations
1. It is vested with the power of civil court to call for information and records, to issue summons, to inspect, and to investigate entities associated with securities markets.
– Investors’ Protection: It facilitates the redressal of investors’ grievances.

Source: TH

 
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