"Calling for information by undertaking inspection, conducting enquiries and audits of stock exchange and intermediaries."

Which function of SEBI is highlighted by this statement?

Regulatory Function

The correct answer is option (3)- Regulatory Function.

Regulatory Function is highlighted in the given lines.

The Securities and Exchange Board of India was established by the Government of India on 12 April 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection.  SEBI also promotes fair trade practices for investor protection.

Regulatory Functions of SEBI

1. Registration of brokers and subbrokers and other players in the market.
2. Registration of collective investment schemes and Mutual Funds.
3. Regulation of stock brokers, portfolio exchanges, underwriters and merchant bankers and the business in stock exchanges and any other securities market.
4. Regulation of takeover bids by companies.
5. Calling for information by undertaking inspection, conducting enquiries and audits of stock exchanges and intermediaries.
6. Levying fee or other charges for carrying out the purposes of the Act.
7. Performing and exercising such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.