Regulatory Function: Regulatory functions involve establishment of rules and regulations for the financial intermediaries along with corporates that helps in efficient management of the market.
The following are some of the regulatory functions:
(i) SEBI has defined the rules and regulations and formed guidelines and code of conduct that should be followed by the corporates as well as the financial intermediaries.
(ii) Regulating the process of taking over of a company.
(iii) Conducting inquiries and audit of stock exchanges.
(iv) Regulates the working of stock brokers, merchant brokers.