Commerce · Ch 8 — Stock Exchange and SEBI
Functions of SEBI
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Functions of SEBI
SEBI's functions under the SEBI Act, 1992 are usually classified into three broad categories.
| Category | Examples of functions |
|---|---|
| Protective functions | Prohibits fraudulent and unfair trade practices; checks and penalises insider trading; prohibits price rigging and market manipulation; undertakes investor-education programmes; promotes a fair-practices code for intermediaries. |
| Regulatory functions | Registers and regulates stock brokers, sub-brokers, merchant bankers, portfolio managers and other intermediaries; registers and regulates mutual funds and collective investment schemes; regulates substantial acquisition of shares and takeovers of companies; conducts inquiries, audits and inspections of exchanges and intermediaries; frames regulations and bye-laws for stock exchanges; levies fees for registration and regulation. |