Correct Answer: Regulating the functioning of commercial banks

Solution : The correct answer is (c) Regulating the functioning of commercial banks.

SEBI is a statutory body that regulates the securities market in India. Its primary functions are to protect the interests of investors and to promote the development of the securities market. It does not regulate the functioning of commercial banks.

Commercial banks are regulated by the Reserve Bank of India (RBI). The RBI is the central bank of India and is responsible for the overall financial stability of the country. It regulates commercial banks to ensure that they are sound and well-managed.