Correct Answer: Assertion is true, but the reason is false.

Solution : The correct answer is (c) Assertion is true, but the reason is false.

The assertion is true. SEBI (Securities and Exchange Board of India) does indeed have regulatory functions that include regulating credit rating agencies operating in India. SEBI's role is to regulate and oversee various entities within the securities market to maintain transparency, fairness, and to protect the interests of investors.

The reason is false. SEBI's regulatory functions are not solely focused on monitoring stock exchanges. While monitoring stock exchanges is a part of its role, SEBI's responsibilities extend to regulating a wide range of entities and activities within the securities market, including credit rating agencies, brokers, market intermediaries, listed companies, and more.