List some examples of the malpractices in capital market

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

Malpractices such as existence 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 delivery of shares, etc that eroded investors’ confidence and multiplied investor grievances. In order to fight with such problems, government established SEBI as a separate regulatory body.
Regulatory functions :
(i) Registration of brokers, sub-brokers and other players in the market.
(ii) Registration of collective investment schemes and mutual funds.
(iii) Regulation of stock brokers, portfolio exchanges, underwriters and merchant bankers and the business in stock exchanges.
(iv) Regulation of takeover bids by companies.
(v) Levying fee or other charges for carrying out the purposes of the Act.
(vi) SEBI conducts inspections, enquiries and audits of stock exchanges.
{pit) Perform and exercise such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.