Q.Explain the regulatory and developmental functions of SEBI.

Regulatory functions control who can operate in the market and how; developmental functions build the market's capacity and infrastructure. …

SEBI's functions beyond investor protection fall into two further categories: regulatory and developmental.

Regulatory functions govern who may operate in the securities market and how. SEBI registers and regulates stock brokers, sub-brokers, merchant bankers, portfolio managers, underwriters and other intermediaries, ensuring only fit and proper persons operate in the market. It registers and regulates mutual funds and collective investment schemes, protecting investors who pool their money into such schemes. SEBI also regulates the substantial acquisition of shares and takeovers of listed companies, so that such transactions are conducted fairly and transparently. It conducts inquiries, audits and inspections of stock exchanges and intermediaries to check compliance, and it frames regulations and bye-laws for the functioning of exchanges, in addition to levying fees for registration and regulatory services. …

Students sometimes merge protective, regulatory and developmental functions into one undifferentiated list; an essay question naming two specific categories e …