Why in the News?

Hyundai Motor India and Swiggy have received Securities and Exchange Board of India’s (SEBI) approval to launch IPOs with Hyundai aiming to raise over $3 billion and Swiggy planning to raise over Rs 10,000 crore. Hyundai's IPO marks the first automaker listing in over two decades, while Swiggy's offer includes both fresh equity shares and an Offer-for-Sale.

About IPO

• It is the process by which a private company or a government company such as LIC, raises funds by offering shares to the public or investors.
• Following the IPO, the company is listed on the stock exchange.
  • Stock exchange is an organized market for the sale and purchase of securities such as shares, stocks, and bonds.
• A listed company can further raise share capital for growth and expansion in the future through a follow-on public offering or FPO.

About SEBI

• Established: By the Government of India on 12^th April 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection.
• Statutory Status: On 30^th January 1992
• Functions Under: Ministry of Finance, Government of India.
• Objectives
  • To regulate stock exchanges and the securities industry to promote their orderly functioning.
  • To protect the rights and interests of investors, particularly individual investors and to guide and educate them
  • To prevent trading malpractices and achieve a balance between self-regulation by the securities industry and its statutory regulation.
  • To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc.