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.
As per the provisions of the draft bill, no permission would be needed to add new seats or to start postgraduate courses.
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.