Indian Regulatory Framework

• Law


  A set of obligations and duties imposed by the government for securing welfare and providing justice to society
• Sources of Law


  • Constitution
  • Statutes / laws made by Parliament and State Assemblies
  • Precedents / Judicial decisions of courts
  • Established Customs & usages
• Constitution of India


  Foremost law that deals with the framework within which our democratic system works
• Constitution of India was made FOR THE PEOPLE, BY THE PEOPLE
• Constitution of India


  • Provides for and protects the fundamental rights of citizens
  • Lays down fundamental duties
  • Lays down powers & duties of govt. (both central & State)
  • Hybrid legal system
• Process of making a Law

  1. Bill

  2. Discussion and debate

  3. Passed in Lok Sabha

  4. Obtain assent of President

  5. Notification

  6. Application

  7. Act of Parliament
• Types of Laws


  • Criminal Law
  • Civil Law
  • Common Law
  • Principles of Natural Justice
• Criminal Law


  Laws pertaining to violations of the rule of law and punishment of the same
• Civil Law


  Primarily for dispute resolution between individuals or organisations rather than punishment
• Common Law


  A judicial precedent or case law - a judgement delivered by Supreme Court will be binding upon the Courts within the territory of India under Article 141
• Principles of Natural Justice


  • No one should be made a judge in his own cause (rule against prejudice)
  • Hear the other party or give a fair hearing
  • Reasoned decision
• Central Civil Services under Ministry of Finance

  • Indian Revenue Service
  • Indian Audit and Accounts Service
  • Indian Economic Service
  • Indian Civil Accounts Service
• Ministry of Finance


  • Apex controlling authority of Central civil services
  • Concerned with economy of India
  • Serving as treasury of India
  • Concerns itself with legislation, financial institutions, taxation, financial markets and the union budget
• Departments of Ministry of Finance

  • Department of Economic Affairs
  • Department of Expenditure
  • Department of Financial Services
  • Department of Public Asset Management
  • Department of Investment and Public Asset Management
• Ministry of Corporate Affairs

  • Administration of companies Act, 2013, Limited Liability Partnership Act, 2008 & Insolvency & Bankruptcy code, 2016
  • Responsible for regulation of Indian enterprises in industrial & service sector
  • Run by civil servants of ICLS cadre
  • Officers are elected through UPSC exam
• Ministry of Home Affairs


  • Responsible for maintenance of domestic policy and internal security
  • Headed by union minister of Home Affairs
• Departments of Ministry of Home Affairs

  • Department of Border Management
  • Department of Internal Security
  • Department of Jammu & Kashmir Affairs
  • Department of Home
• Ministry of Law & Justice


  • Deals with management of legal affairs through Legislative Department
  • Administration of justice in India through Department of Justice
• Departments of Ministry of Law & Justice

  • Department of Legal Affairs
  • Legislative Department
  • Department of Justice
• Securities & Exchange Board of India (SEBI)

  • Regulatory body for securities and commodities market
  • Established on 12 April 1988 as executive body
  • Given statutory powers on 30 January 1992 through SEBI Act 1992
• Reserve Bank of India (RBI)

  • India's Central Bank and regulatory body for banking system
  • Under ownership of Finance Ministry
  • Responsible for control, issue and maintaining supply of Indian Rupee
  • Maintains country's main payment systems and works to promote economic development
• Bharatiya Reserve Bank Note Mudran


  • Specialised division of RBI that prints and mints Indian currency notes
• National Payments Corporation of India

  • Established to regulate payment and settlement systems
• Deposit Insurance and Credit Guarantee Corporation

  • Provides insurance guaranteeing deposits and credit facilities to all Indian banks
• Insolvency & Bankruptcy Board of India

  • Regulator overseeing insolvency proceedings and Insolvency Professionals (IP) and Insolvency Professional Agencies (IPA) in India
  • Established on 1 October 2016 and given statutory powers through Insolvency & Bankruptcy Code 2016
• Insolvency & Bankruptcy Code 2016


  • Covers individuals, partnership firms, companies, the new code will speed up resolution process of stressed assets for banks
• Judiciary System


  • Regulation of interpretation of Acts & Codes
  • Dispute Resolution
  • Promotion of fairness among citizens of the land
• Hierarchy of Courts


  • Supreme Court
  • High Court
  • District Court
• Supreme Court


  • Apex body established on 26 January 1950
  • Consists of 34 members including 1 Chief Justice
  • Chief Justice of India appointed as highest authority
• High Court


  • Highest court of appeal in each state & UT
  • Has appellant, original jurisdiction & supervisory jurisdiction
  • 25 high courts, are for each state and a UT
• District Court


  • Court of sessions deals with Criminal matters
  • Civil judge can try suits claiming property under dispute within the Local Limits where parties reside
  • Metropolitan courts established in Metropolitan cities where population is 10 Lakh or more
• Indian Penal Code

  1860
• Criminal Procedure Code

  1973
• Code of Civil Procedure

  1908
• Civil Law

  1. Law of contract
  2. Family law
  3. Property law
  4. Law of tort
• Doctrine of 'Stare Decisis'

  Means " to stand by that which is decided "
• Jus Natural

  Principles of natural justice
• Nemo judex in causa sua


  No one should be made a judge in his own cause and it's a rule against prejudice
• Audi alteram partem


  Hear the other party or give the other party a fair hearing
• SEBI

  1. Established in 12 April 1988 as executive body
  2. Given statutory powers on 30 January 1992 through SEBI Act 1992