SEBI Functions Analysis

The Securities and Exchange Board of India (SEBI) is the primary regulator of the securities market in India. Its main objective is to protect investors and promote the development and regulation of the securities market.

Key SEBI Regulatory Roles

SEBI performs several crucial functions. Let's examine the options provided:

• Prohibiting insider trading: SEBI actively works to prevent insider trading, ensuring fair market practices. This is a core function.
• Promoting and regulating self-regulatory organisations (SROs): SEBI encourages the formation of SROs and oversees their functioning to maintain market integrity. This is within SEBI's mandate.
• Regulating portfolio managers: SEBI lays down guidelines and regulations for portfolio managers to safeguard investors' interests. This is a key regulatory function.

Identifying SEBI's Non-Function

The question asks which activity is not a function of SEBI. Based on SEBI's established roles:

• Underwriting new capital issues: Underwriting is typically performed by investment banks or financial institutions, not SEBI. SEBI regulates the process of capital issuance and the entities involved, but it does not underwrite the issues itself. Underwriting involves taking on the risk of buying unsold securities.

Therefore, underwriting new capital issues is not a function of SEBI.