Mr Vikas Mehra was the Chairman of 'IBM Bank'. The bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of 'UK Bank'. Mr Vikas Mehra knew that the share price of IBM Bank ' would rise on this announcement.Being a part of the Bank, he was not allowed to buy shares of the Bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest 4 crotes in shares of his bank promising him the capital gains.
As expected, after the announcement, the share prices went up by 50% and the market price of Mukand's shares was now 6 crores. Mukand earned a profit of 2 crores. He gave 1 crore to Vikas Mehra and kept. 1 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect irregularity. SEBI imposed a heavy penalty on Vikas Mehra.
Quoting the lines from the above para identify and atate any two functions performed by SEBI in the above case.
or
Mr Sanjay Nehra was the Chairman of 'Taran Bank'. The bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their share was also steadily rising. The bank was about to announce taking over of 'Vena Bank'. Mr Sanjay Nehra knew that the share price of 'Taran Bank' would rise on this announcement. Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his rich friend Sudhir and asked him to invest Rs. 5 crores in shares of his bank promising him the capital gains.
As expected tha share prices went up by 40% and the market price of Sudhir's shares was now Rs. 7 crores. He earned a profit of Rs. 2 crores. He gave Rs.1 crore to Mr Sanjay Nehra and kept Rs.1 crore with himself. On regular inspection and by conducting enguiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity . The SEBI imporsed a heavy penalty on Mr Sanjay Nehra. By quoting the lines from the above para identify and state any two functions that were perfomed SEBI in the above case.

Explanation

The two functions performed by SEBI in the above case are as follows:
(i) SEBI conducts inspections, enquiries and audit of stock exchanges.
It is one of the regulatory functions of SEBI. Lines from the above para which indicate that the above function was performed are :
"On regular inspection ........................ was able to detect this irregularity."
(ii) SEBI controls insider trading and imposes penalty for such practices.
It is one of the protective functions of SEBI. Lines from the above para which indicate that the above function was performed by SEBI are
" SEBI imposed .................. on Vikas Mehra."