Protective Functions-

• 1. Prohibition of fraudulent and unfair trade practices like making misleading statements, manipulations, price rigging etc. 
• 2. Controlling insider trading and imposing penalties for such practices.

Development Functions-

• 1. Training of intermediaries of the securities market.
• 2. Conducting research and publishing information useful to all market participants. 
• 3. Undertaking measures to develop the capital markets by adapting a flexible approach.

Regulatory Functions-

• 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. 
• . 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.

Objectives-

1. To regulate stock exchanges and the securities industry to promote their orderly functioning. 

2. To protect the rights and interests of investors, particularly individual investors and to guide and educate them.