Mr. Vikas Mehra was the Chairman of IBM Bank'. The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of 'UK Bank'. Mr. Vikas Mehra knew that the share price of 'IBM Bank' would rise on this announcement. Being a part of the Bank, he was not allowed to buy shares of the bank.
He called one of his rich friends Mukand and asked him to invest ₹4 crores in shares of his bank promising him the capital gains.
As expected after the announcement, the share prices went up by 50% and the market price of Mukand's shares was now ₹6 crores. Mukand earned a profit of ₹2 crores. He gave ₹1 crore to Vikas Mehra and kept ₹1 crore with him. On regular inspection and by conducting enquiries of the brokers involved. Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra.
Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case.