In India, which of the following reviews the independent regulators in sectors like telecommunications, insurance, electricity, etc. 1. Ad Hoc Committees set up by the Parliament 2. Parliament Department Related Standing Committees 3. Finance Commission 4. Financial Sector Legislative Reforms Commission 5. NITI Aayog Select the correct answer using the code given below.?

Option 1 : 1 and 2

The correct answer is 1 and 2.

• In India, there are 24 Department Related Standing Committees that comprise members from both Houses of Parliament.
  • These committees are ministry specific and may review the working of regulators within their respective departments.
  • For example, in August 2012, the Standing Committee on Energy presented a report on the functioning of the Central Electricity Regulatory Commission’.
  • In 2011, the Standing Committee on Information Technology had listed the functioning of TRAI for examination.
• Parliament may also establish ad-hoc committees which may examine the working of regulators.
  • For instance, the terms of reference of the Joint Parliamentary Committee (JPC) on the allocation of the 2G spectrum include the review of the policy on spectrum pricing and grant of telecom licences.
  • Another example of parliamentary oversight through ad-hoc committees is the scrutiny of the working of SEBI and RBI by the JPC on the stock market scam. 
• Finance Commission and NITI Aayog are of advisory nature, they do not review the functioning of any regulator.
• The Financial Sector Legislative Reforms Commission was set up once to review financial legislation and not regulators in the country.