Q.Explain the regulatory functions of SEBI.

SEBI's regulatory functions concern how market intermediaries and structural events like takeovers are governed.

SEBI's regulatory functions govern the orderly functioning of the market's structures and participants:

1. Registration of intermediaries — stock brokers, sub-brokers, merchant bankers, and portfolio managers must be registered with SEBI before they can legally operate.
2. Registration and regulation of mutual funds and collective investment schemes.
3. Regulation of company takeovers — through rules governing the substantial acquisition of shares, to ensure fairness and transparency when control of a listed company changes.
4. Conducting inquiries and audits of stock exchanges and intermediaries, and calling for their periodic returns.
5. Levying fees on registered intermediaries. …

Omitting SEBI's quasi-legislative rule-making power, which is itself a regulatory functio …