Reforms needed in various sectors

SEBI : AN EFFECTIVE REGULATOR For growing and dynamic country like india, capital markets play an important tool of not just attracting domestic and foreign investment but also reflect the state of affairs of our country. SEBI has been entrusted with responsibility for everything that is right or wrong in Indian capital markets. With changing times, challenges turn up thereby the need for reform rises…….. JOURNEY SO FAR > SETTLEMENT SYSTEM: introduction of T+5 rolling settlement in 1998, now gradually opting for T+2 basis. >DEMATERIALISATION OF SHARE CERTIFICATES: need was felt to avoid theft or forgery or delay of share certificates. >FOSTERING MUTUAL FUNDS: by relaxing KNOW YOUR CUSTOMER (KYC) norms, popular and much safe. >EYE ON FIIs: revised FII limits regularly and imposed checks and balances to curb flow of black money into Indian markets. >IPO REFORMS: strict vigil on usage of issue proceeds, greater disclosure of companies and their accounts, introduction of e-IPO procedure electronic bidding. >GRIEVANCE REDRESSAL: SCORES( SEBI COMPLAINTS REDRESS SYSTEM) to assist investors lodge complaints in a structured way. CHALLENGES AHEAD >need for a robust framework to curb INSIDER TRADING and to upgrade its manpower and capacities to deal with situations. > Issue of fraud CIS (collective investment scheme) have to be dealt with. >Introduction of regulatory changes in primary and secondary markets. >focus on supervision of security market intermediaries such as fund managers. POWER SECTOR ENERGY POLICY of INDIA is predominantly controlled by ministry of power, ministry of coal, ministry of new renewable energy and administered by PSUs. The massive breakdown of electricity in 2012,  distribution losses, overload on grid, power scarcity has once again thrown the focus on health of power sector  Few reforms include on >GRID COLLAPSE:  it’s a symptom of sickness caused by technical deficiencies and political efficiency.  Frequency falling below 49hertz and failure or tamper if circuit breakers can cause a grid collapse. The solution lies in restructuring SEBs (STATE ELECTRICITY BOARDS) put an end to FINANCIAL mismanagement, need for a national grid or smart grid, reducing losses through efficient management. >POWER SCARCITY: serious demand supply gap during summers due to theft and substandard equipment. Improve power generation strategy by use of techy up gradation, fuel mix, use of non conventional sources, control input cost. >SIMPLIFY BID STRUCTURES AND ENCOURAGE COMPETITION: to reverse the flow of falling private sector investment in electricity generation, the need arises to boost generation by completion of project on time, clear finance concerns, ensure fuel security, segregation of risks among players. > TRANSMISSION STRATEGY with focus on national grid, interstate connections, optimization of transmission cost. > CONSERVATION STRATEGY: focus on demand side management, load management, techy up gradation to provide energy efficient gadgets. JUDICIAL REFORMS >DISTURBING TRENDS OF JUDICIAL ACTIVISM:  PIL need to be used for protection and guardian to protect right of citizen and not correcting act of commission or omission of executive decisions. >LAWYERS STAY AWAY FROM COURT:  frequent conflicts between police-lawyers when police refuse to file FIRs. Results in bail application difficult in their absence, litigants feel delay and frustrated, frequent adjournments and boycott of courts. It’s time for Supreme Court to enforce its ruling in this aspect. >JUSTICE DELAYED IS JUSTICE DENIED… AND .. JUSTICE HURRIED IS JUSTICE BURRIED >NUMBER OF JUDGES TO POPULATION LOW (include MALIMATH COMMITTEE REFORM): India (10 lakh pop)—10; usa—107; Canada—75 >LACK OF ADEQUATE INFRASTUCTURE: SPECIALISATION required, training of staffs, e courts, amend archaic laws--CrPC, CPC, INDIAN EVIDENCE ACT. >ACCOUNTABILITY FOR JUDICIARY:  LOWER COURTS have accountability to higher courts but no independence to innovate. HIGHER COURTS have independence but not accountable to lower courts or any (even in case of proved misbehavior go scot free, and prefix ‘JUSTICE’ is not removed). >AGE OF HCs and SCs controversy: during 150th Bombay HC celebrations, PM advocated raise of age of judge of HC from 62-65. Reasons include competent authority; matured and experienced learner; may not opt for post retirement work. >NEED FOR ALL INDIA JUDICIAL SERVICES:  will have representation all over India to give a secular look; corruption can be minimized through competitive authority postings.   Central Pollution Control Board
A central institution established to set environmental standards for all parts of the country focuses on strengthening of CPCB and its preparedness to undertake various measures as suggested by environmental statutes.
It focuses on the following outputs/ aspects -
• Facilitate reprioritization/ reengineering of CPCB scheme with a view to increasing its efficiency, transparency and accountability.
• Assess the overall physical and financial outcomes and impact of CPCB scheme, as well as its cost effectiveness, during the Five Year Plan.
• Improve the quality of implementation and enhance the efficiency and accountability of the delivery mechanism.
issues…
• The CPCB does not have sufficient teeth for pollution control and its infrastructure resources are not adequate to deliver the mandate.
• Although CPCB and respective SPCB are two independent institutions located at two different levels, they need to function jointly/cohesively and in a coordinated manner. The performance of CPCB in terms of its impact on pollution abatement and control depends largely on the efficiency and efficacy of SPCBs, CPCB should, therefore, have a stake in the governance of state boards. For this purpose, there must be representation of CPCB in the governing board of all SPCBs. This practice is being followed presently in Tripura.
• Presently there is no inbuilt performance review system of CPCB at regular interval by MoEF. The review should include both performance budgeting and perspective planning of CPCB.
• A committed and qualified strong workforce is required if CPCB has to become a Centre for Excellence for pollution control. In order to attract desired people there must be enough provision for training and exposure visits of the scientific staff so that they are updated with new technological development taking place across the globe.
• Availability of financial resources should be ensured if CPCB has to perform its mandate efficiently. Presently CPCB is entirely dependent on Government for funds. Accordingly, there must be quantum jump in financial support by Government to CPCB.
• It is also desirable that CPCB should reduce its dependency for funds on MoEFand look forward to other avenues.
• In general, pollution control strategies are based on regulations as is evident from the enactment of a large number of regulatory laws over the years. Inadequate emphasis has been laid on strategies based on technologies or comprehensive information to stakeholders. .
• Environment being a common property resource can be handled properly through collective efforts rather than enforcing the regulations. Here the CPCB has to play a proactive role in the future. CPCB should work more closely with local communities and NGOs for creating awareness and knowledge about pollution abatement and control.
• There is a need for closer coordination with other Ministries and organizations which are directly or indirectly related to pollution control.
Suggestions for some priority programs of CPCB are listed below -
• Prepare and monitor action plans for Critically Polluted Areas (CPAs).
• Develop and implement, on a pilot scale, PPP models for setting up CETPs, CTDFs, CBMTDFs and STPs.
• Prepare and implement an action plan for major cities for treatment, reuse and recycling of sewage and effluents.
• Promote R&D in development of low cost technology for effluent and sewage treatment, including ZLD, wherever feasible.
• Explore outsourcing of functions such as training and awareness.
• Strengthen the monitoring and enforcement of emission and effluent standards both for point and non-point sources.

Inland Waterways Authority of India (IWAI) was set up inOctober 1986 vide IWAI Act 1985 declared through Acts of
Parliament come under the purview of Central Govt/IWAI; other waterways under the respective State Govts.
IWAI is mandated to take up

>Infrastructure development & regulation on NWs( new waterways)
>Techno- economic feasibility studies
>Advise the Central Govt on IWT matters( inland water transport)
>Assistance to States in IWT development
Constraint in the Development of IWT
• Diversion of water for irrigation, industrial and other needs reducing the flows in the rivers resulting in the reduction of depth and shoal formation.
• Excessive silt loads from erosion of uplands due to bad catchment management and increased deforestation.
• Inadequate river conservancy measures, resulting in gradual deterioration of waterways.
• Non availability of adequate navigational aids resulting in unsafe passage and high travel time.
• Inadequate vertical and horizontal clearances for plying vessels of economic size in many traditional waterway routes.
• Lack of adequate terminal facilities at the loading and unloading points being non-existent and where existent being inadequate
FORWARD MARKET COMMISSION
The Forward Markets Commission is a regulatory body for commodity markets in India. The
forward contracts in commodities are regulated as per F.C.( R ) Act, 1952 by this body. Inherent objective is to achieve price stability by means of price discovery and risk management. The Commission also collects information regarding the trading conditions in respect of goods to which any of provisions of Act is made applicable. It also advises Central Government regarding recognition of associations. Limitations of FMC
Following are the limitations of FMCs
a. Option trading prohibited
b. Functions as a Government department with limited autonomy with respect to
1. Recognition / de-recognition of exchanges
            2. Regulation of intermediaries
           3. Financial and administrative autonomy.
c. Market expansion has put heavy pressure on the FMC’s coping capacity. Issues and Challenges

Strengthening of and Autonomy for the Regulator:
Currently, the commission is an arm functioning under the Ministry of Consumer Affairs
and it looks after the working of futures exchanges also and needs to seek government permission for many decisions.
.
•Increasing the breadth and depth of the market
For increasing breadth and depth of market, there is necessity of participation of farmers/
aggregators and other hedgers as well as participation of banks and mutual funds.

 •Improving the Governance of Exchanges and Intermediaries
Possible way to improve this can be stricter enforcement of legal and regulatory provisions
and improvement in competencies and transparency.
•Standardization of contract designs and quality parameters across the market.

•Capacity Building: FMC, Exchanges,Warehouses, Assayers.
•R and D in Commodity market governance and structural issues. BY… NEHA NINAWE
REFERENCES: the Hindu, Indian express, news on air, net digging