Posted in Finance, Accounting and Economics Terms, Total Reads: 244
Definition: Primary Regulator
A primary regulatory agency is also known as regulatory authority, regulatory body or even a regulator. It is generally a public authority or a government agency exercising as an autonomous authority over some kind of human activity in a regulatory or supervisory capacity. It is an independent agency differentiating itself from other sub branches or organisations of the government.
Regulatory agencies work in the area of governing and forming laws—regulating or even making rules (making and enforcing rules, regulations and implementing, supervising companies in the market for the benefit of the public at large). The need of an independent primary regulatory agency is right by the complication of certain regulatory issues and supervision tasks that require expertise knowledge in that specific domain, the need for fast implementation of authority for public in various industries. Primary independent regulatory agencies can perform investigations or audits, and some are even authorized to fine the relevant parties and take necessary certain measures for the public welfare.
Regulatory agencies are generally a part of the executive branch of the government, or they have sole authority to perform their functions. Their actions are also generally open to legal review. Regulatory authorities are set up to enforce standards and safety for general public, or to oversee use of public goods and regulate commerce. One of the examples of primary regulatory agency is U.S. Food and Drug Administration in the USA & TRAI in India.
The Securities and Exchange Board of India (SEBI) is the primary regulator for the securities market in India. It was formed in the year 1988 and given sole powers on 12 April 1992 through the SEBI Act, 1992.