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      Question

      Which of the following is not a function of SEBI as

      provided under SEBI Act 1992?
      A prohibiting insider trading in securities Correct Answer Incorrect Answer
      B calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, mutual funds Correct Answer Incorrect Answer
      C inspection of any book, or register, or other document or record of any listed public company Correct Answer Incorrect Answer
      D While trying a suit, summoning and enforcing the attendance of persons and examining them on oath Correct Answer Incorrect Answer
      E attach, for a period not exceeding sixty days, bank accounts or other property of any intermediary or any person associated with the securities market, pending investigation or inquiry or on completion of such investigation or inquiry Correct Answer Incorrect Answer

      Solution

      Based on Section 11 of the Securities and Exchange Board of India (SEBI) Act, 1992, the correct answer is:   attach, for a period not exceeding sixty days, bank accounts or other property of any intermediary or any person associated with the securities market, pending investigation or inquiry or on completion of such investigation or inquiry   Reasoning (Why this is not a function/power as  stated ):   The statement is incorrect  regarding  the time limit.   According to Section 11(4)(e) of the SEBI Act, SEBI has the power to attach bank accounts or other property, but the Act specifies that this attachment is for a period not exceeding ninety days (not sixty days).  

      • Statutory Requirement: The attachment order is valid for up to 90 days. Within this period, SEBI must obtain confirmation from the Special Court to continue the attachment.  
      Verification of Other Options (Valid Functions):  
      • Prohibiting insider trading: Correct under Section 11(2)(g).  
      • Calling for information/inspection of stock exchanges/mutual funds: Correct under Section 11(2)( i ).  
      • Inspection of books of listed public company: Correct under Section 11(2A) (specifically if there are grounds to believe the company is indulging in insider trading or fraudulent practices).  
      • Summoning and enforcing attendance (Civil Court powers): Correct under Section 11(3).  

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