Financial regulation means putting laws for the financial institutions like banks to follow. RBI, SEBI, PFRDA and IRDA are the important regulators. But among these, RBI is the prominent institution. RBI is the regulator for most of the financial sector comprising money market, foreign exchange market, government securities market and also the market for certain types of financial derivatives. It regulates the banking system, the Non-Banking Financial Intermediaries (NBFIs) and credit information companies. Prudential regulation instructions are designed by the RBI for regulation. Capital market is regulated by SEBI. Insurance companies are regulated by IRDA whereas pension funds are regulated by PFRDA.
