List some examples of the malpractices in capital market, which forced government to set-up a seperate regulatory body SEBI. State some of the regulatory functions of SEBI.

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Malpractices such asexistence of self-styled merchant bankers, unofficial private placements, rigging of prices, unofficial premium on new issues, non- adherence of provisions of the Companies Act, violation of rules and regulations of stock exchanges and listing requirements, delay in delivary of shares etc, had eroded investors confidence and multiplied investor grievances. In order to fight with such problems, government established SEBI as a seperate regulatory body.

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