The government is exploring the possibility of having a common regulator for various industrial sectors. The idea is to bind together varied regulations in a single and coherent regulatory framework. The Planning Commission, in consultation with the finance ministry, is preparing a paper in this regard.
Officials said the paper would reflect the overall regulatory approach of the government. Apart from having a common regulator, it may set common criteria for setting up sector regulators such as Trai, Irda and Sebi. The existing regulatory bodies would have to align themselves to the new policy framework once it was in place, officials said.
?It is a complex task, but we are trying to put in place an overall structure, which will act as a guiding tool for regulators and those being regulated,? an official said. The plan is to minimise the number of regulations. Sources pointed out that the idea was not to set up a new regulator but to have a common regulatory policy.
The proposal will specify issues including the powers of various regulators, how to regulate tariffs, the strategies to manage and foster competition, the selection criteria of the members of regulatory bodies and norms for regulatory tribunals.
Also, emphasis is being laid on setting up integrated sectoral regulators for communications, energy and transport. For instance, telecom, Internet, IPTV and other modes of communication may have a common regulator.
The ambitious policy enjoys the backing of the UPA government. It is being prepared in consultations with various government departments, ministries and stakeholders.
The government might bring in fresh legislation to lay down the overall regulatory approach, sources said. They said legal opinion was also being sought to find out whether such a policy was tenable. The need for a uniform regulatory framework has arisen due to the fact that the sectoral approach in creating regulators has led to uneven regulatory environment, which is stifling economic growth.
Meanwhile, the finance ministry is separately coming out with a paper on converging regulations related to investment advisers.