Q.Explain the protective functions of SEBI.

Protective functions are the ones aimed directly at shielding investors from fraud and manipulation.

Protective functions are those actions of SEBI aimed directly at safeguarding the interests of investors in the securities market. These include: prohibiting fraudulent and unfair trade practices by companies and intermediaries in connection with securities transactions; controlling and penalising insider trading, where persons with access to unpublished price-sensitive information trade unfairly on it; prohibiting price rigging, where a group of operators artificially inflates or depresses a security's price; undertaking investor-education programmes so that the public can make informed investment decisions and recognise malpractices; and promoting a * …

Students sometimes list registration of brokers or mutual funds under 'protective functions' — that is actually a regulatory function; keeping the three categories (pr …