Lines from the Para:
(a) "He called one of his rich friends Sudhir and asked him to invest Rs.5 crore in shares of his bank”.
(b) "On regular inspection and by conducting enquiries of the brokers involved, SEBI was able to detect this irregularity".
Functions that were performed by SEBI in the above case were:
(i) Regulatory function: 'On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity.'
SEBI can call for information by undertaking inspection, conducting enquiries and audits of stock exchanges and intermediaries.
(ii) Protective function: 'The SEBI imposed a heavy penalty on Vikash Mehra.'
SEBI controls insider trading and imposes penalties for such practices.