"Calling for information by undertaking inspection, conducting enquiries and audits of stock exchange and intermediaries. "Which function of SEBI is highlighted by this statement.

The correct option is Regulatory Function.

Explanation:

The Securities and Exchange Board of India (SEBI) has three primary categories of functions: Protective, Development, and Regulatory functions.

1. Understanding Regulatory Functions:
Regulatory functions are performed by SEBI to establish rules, regulations, and a code of conduct for the intermediaries and players in the financial markets, ensuring they operate in an orderly and systematic manner. These functions include registering intermediaries, registering collective investment schemes, levying fees, and conducting inspections, enquiries, and audits of stock exchanges and intermediaries to ensure compliance with the rules.

2. Analyzing the Statement:
The statement "Calling for information by undertaking inspection, conducting enquiries and audits of stock exchange and intermediaries" represents a mechanism used by SEBI to enforce compliance, check malpractice, and regulate the operations of financial markets. Thus, it directly falls under the Regulatory Function of SEBI.