Detailed Explanation:

Answer: Option 1 — 1 and 2

In India, independent regulators in sectors like telecommunications, insurance, and electricity are primarily reviewed by Parliamentary mechanisms. Ad Hoc Committees (including Joint Parliamentary Committees) are set up for specific investigations or reviews of regulatory bodies, while Department Related Standing Committees (DRSCs) regularly examine the annual reports, budgets, and performance of regulators under their respective ministries, ensuring executive accountability.

✅ Statement 1 – Correct: Ad Hoc Committees, including Joint Parliamentary Committees (JPCs), are established by Parliament to review specific regulatory bodies or investigate irregularities in their functioning.
✅ Statement 2 – Correct: Parliamentary Department Related Standing Committees (DRSCs) systematically review the performance, annual reports, and budgetary allocations of independent regulators falling under their respective ministries.
❌ Statement 3 – Incorrect: The Finance Commission (Article 280) primarily deals with distribution of financial resources between the Union and States, not with reviewing sectoral regulators.
❌ Statement 4 – Incorrect: The Financial Sector Legislative Reforms Commission (FSLRC) was a temporary body created to recommend legal reforms in the financial sector; it does not conduct ongoing reviews of regulators.
❌ Statement 5 – Incorrect: NITI Aayog is a policy think tank providing strategic advice but lacks statutory authority to formally review or oversee independent regulators.

📝 Short Notes: Parliamentary Oversight of Regulators

• Ad Hoc Committees: Temporary parliamentary committees established for specific purposes, such as investigating irregularities or examining the functioning of particular institutions or regulators (e.g., JPCs).
• Department Related Standing Committees (DRSCs): 24 permanent committees (16 for Lok Sabha, 8 for Rajya Sabha) that examine bills, budgets, and annual reports of ministries and their attached regulators.
• Parliamentary Accountability: Independent regulators, despite autonomy, remain accountable to Parliament through committee scrutiny, questions, and debates.
• Examples of Regulators: TRAI (Telecom), IRDAI (Insurance), SEBI (Securities), CERC (Electricity), etc.
• Finance Commission: Constitutional body (Article 280) focused on fiscal federalism—distribution of taxes and grants between Centre and States.
• NITI Aayog: Policy commission replacing Planning Commission; provides strategic inputs but has no regulatory oversight mandate.