Regulatory directions empower SEBI to order exchanges, clearing agencies and listed companies to protect investors and market integrity. SEBI may, after inquiry, issue directions to recognised stock exchanges, clearing corporations, other market agencies or persons, and to companies whose securities are listed or proposed to be listed, when necessary for investor protection, orderly market development, prevention of conduct detrimental to investors or to secure proper management; this includes power to require disgorgement of wrongful gains or averted losses and, after prescribed inquiry and recorded reasons, to levy penalties under specified provisions.