Following are the protective functions of Securities and Exchange Board of India SEBI: 

1. Check on unfair practices – SEBI prevents fraudulent and unfair trade practices in the interest of investors. Some of the usual unfair trade practices are making misleading advertisements, manipulations, price rigging etc. SEBI takes strong actions against the companies indulging in these unfair trade practices. 

2. Control on insider trading – When a person having access to price sensitive information in respect of securities of a company uses the information to make his personal profit, it is called insider trading. SEBI keeps a strict check on insider trading and takes strict action. 

3. Protection of investors – SEBI protects the rights and interests of investors particularly individual investors and to guide and educate them. SEBI has compelled the companies to give accurate information to the investors on regular basis. 

4. Code of conduct – SEBI promotes fair trade practices by developing a code of conduct so that companies and financial intermediaries render better service to the investors.