The regulated markets are considered responsible institutions in discharging all the functions connected with the sale of outputs, keeping in view the overall interest of the farming community and the ultimate consumers. The study was undertaken in selected regulated markets of Karnataka for the purpose of to elicit opinions from farmers and traders respondents about the performance and policy reforms of regulated markets. The performance of regulated markets as opined by the traders that, charges fixed for weighing, market fee, market information through display on notice board and payment of produce over 15 days after the sale are affecting the performance of markets. Therefore an immediate attention should be given to improve these variables, which are responsible for the better functioning of the regulated markets. Spot payment is necessary otherwise farmers look for alternative selling arrangements, which lead to loss of income to the market committee. In this context, introduction of Clearing House Scheme with the help of merchant association may help in this direction.