Which of the following is a regulatory function of the Securities and Exchange Board of India (SEBI)?

Correct option is A

SEBI performs three major categories of functions:
1. Regulatory Functions
2. Developmental Functions
3. Protective Functions
A regulatory function means SEBI’s authority to frame rules, regulate intermediaries, enforce norms, and maintain the integrity of the securities market. Among the given options, the function that falls directly under SEBI’s regulatory powers is:
Levying fees or other charges for carrying out the purposes of the SEBI Act.
This is explicitly recognized as a regulatory function, because SEBI is empowered to:
· Regulate business in stock exchanges
· Register market intermediaries
· Levy fees and charges on intermediaries
· Enforce compliance with laws and regulations
Information Booster
1. SEBI’s regulatory functions ensure that the securities market operates fairly, transparently, and efficiently.
2. Regulatory powers include registration of intermediaries, market surveillance, and maintenance of listing obligations.
3. SEBI can conduct inspections, issue guidelines, and take corrective actions to enforce compliance.
4. Levying fees helps SEBI fund its regulatory activities independently, reducing reliance on government support.
5. Strong regulation protects investors, promotes ethical practices, and boosts confidence in the market.
Additional Information
· (b) Undertaking measures to develop the capital market – Incorrect; this is a developmental function, aimed at improving efficiency and promoting growth of the capital market.
· (c) Undertaking steps for investor protection – Incorrect; this falls under protective functions, where SEBI safeguards investors from fraud and unfair practices.
· (d) Training of intermediaries of the securities market – Incorrect; this is also a developmental function aimed at improving professionalism and expertise in the market.