Outline the functions of SEBI.

Or

Explain any five Regulatory functions of Securities and Exchange Board of India.

Or

State any four protective functions of Securities and Exchange Board of India (SEBI).

The functions of SEBI can be divided into three parts:

I. Protective Functions: Following are the protective functions of SEBI:

(i) To check unfair trade practices (such as, to supply misleading statements to cheat the investors) in connection with security market.

(ii)To check insiders trading in securities. [Insider trading means the buying and selling of securities by those persons (Directors, Promoters, etc.) who have some secret information about the company and who wish to take the advantage of this secret information.)

(iii) To provide education relating to dealing in securities to the investors.

(iv) To promote code of conduct relating to security market.

II. Regulatory Functions: The following are the regulatory functions of the SEBI:

(i) To regulate the business being done in the share market.

(ii)To register brokers, sub-brokers, transfer agents, merchant banks, underwriters etc.

(iii) To register and regulate the credit rating agency.

(iv) To register and regulate the venture capital fund.
(v) To carry out audit of share markets.

III. Developmental Functions: The following are the developmental functions of the SEBI:

(i) To impart training to the intermediaries. (Intermediaries include share brokers, Sub-brokers, Share Transfer Agents, Issue Registrars, Merchant Bankers, Portfolio Managers, etc.)

(ii) To encourage self-regulating organisations.

(iii) To carry on research work.

(iv) To publish different kinds of information for the convenience of all the parties operating in the capital market.