Functions of SEBI

SEBI carries out the following tasks to meet its objectives: Protective functions, Regulatory functions, and developmental functions. Functions that SEBI performs as a part of its protective functions are:

♤ It checks price manipulation

♤ It bans Insider trading

♤ It prohibits unfair and fraudulent trade practices

♤ It promotes fair code of conduct in the security market

♤ It takes efforts to educate the investors regarding ways to evaluate the investment options better

As a part of its regulatory functions, SEBI performs the following role:

♤ It has designed a code of conduct, rules, and regulations to regulate the brokers, underwriters, and other intermediaries

♤ SEBI also governs a company’s takeover.

♤ It regulates and registers the workings of share transfer agents, stockbrokers, merchant bankers, trustees, and others who are linked with the stock exchange.

♤ It regulates and registers the mutual funds as well.

♤ It conducts audits and inquiries of stock exchanges.

As a part of its developmental functions, SEBI performs the following role:

♤ It facilitates the training of the intermediaries.

♤ It aims at promoting activities of the stock exchange by having an adoptable and flexible approach.