According to the draft bill, the commission will have government nominated chairman and members, and the board members will be selected by a search committee under the Cabinet Secretary.
There will five elected and 12 ex-officio members in the commission.
The draft bill also proposes a common entrance exam and licentiate exam which all medical graduates will have to clear to get practicing licences, the official said.
The deterrence for non-compliance with maintenance of standards is in terms of monetary penalty.
The draft bill is aimed at bringing reforms in the medical education sector which has been under scrutiny for corruption and unethical practices, the official said.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections. Election results will be out on May 23.