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Journalism of Courage
A government-sponsored committee has suggested setting up regulatory review authorities to weed out existing regulations which have outlived their utility.
The panel has also said that regulators should institutionalise a consent mechanism for dealing with cases that have no systemic impact.
The committee set up for suggesting ways on reforming regulatory environment for doing business in India,headed by former Sebi chief M Damodaran,in a report on September 2,has said it has become necessary to evaluate the contemporary relevance and clarity of the existing set of regulations. The committee has called for establishing a regulatory review authority (RRA) towards this end.
Every organisation engaged in writing regulations or supporting legislation,should have a RRA to continuously examine the stock of existing regulations and to weed out those that do not have any continuing use, the Damodaran committee said in its report to the corporate affairs ministry.
This,the panel said,is necessary to have a better sense and understanding the relevant context. To facilitate resolution of bilateral commercial matters,the committee has recommended that the proposed RRA should institutionalise setting up of a consent mechanism where cases having no systemic impact are dealt in a summary manner. This would help in dealing with large volume of systemically unimportant matters, the committee said.
The panel has also favoured arbitration as the preferred means of dispute resolution instead of resorting to civil courts. In order to bring about a mechanism for efficient arbitration,the committee has called for creating a pool of trained personnel to handle the process.
