The three protective functions of Securities and Exchange Board of India are as follows:
(i) One of the major objectives of SEBI is to check malpractices such as insider trading, violation of rules and nonadherence to the Companies Act, and imposing penalties for such practices.
(ii) SEBI provides investors with information about companies as required by them for investor protection.
(iii) SEBI provides guidelines related to investment in securities in this way, it enables investors to take well-informed decisions.
(iv) SEBI provides a Promotion of fair practices and code of conduct for the trade practices of various intermediaries such as brokers and merchant bankers. It keeps a check on the activities of these intermediaries and provides them a competitive environment.