question_answer

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 called one of this rich friends Mukand and asked his to invest ` 4 crores in the share of his bank promising his the capital gains. As expected, after the announcement, the share prices went up by 50% and the market price of Mukand's shares 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 enquires of the brokers involved, the Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra. Quoting liens from the above paragraph, identify and state any two functions performed by the SEBI in the above case.                                                                                                                                                  [AI 2016]

Answer: