The Securities and Exchange Board of India, or SEBI, is the statutory regulator of the Indian securities market. It was set up in 1988 and given legal powers under the SEBI Act of 1992, with a mandate to protect investors, develop the market and regulate intermediaries. For IPOs, SEBI writes the rules in the Issue of Capital and Disclosure Requirements Regulations, 2018, reviews every Draft Red Herring Prospectus, publishes its observations, and sets timelines such as the three-day listing cycle. SEBI approval of an offer document means the disclosures meet the rules; it does not mean the company is good or the price is fair, and the offer document says so on its cover. SEBI also registers and supervises lead managers, registrars, depositories, brokers and mutual funds, investigates insider trading and market manipulation, and can impose penalties. Investors can complain through the SEBI SCORES platform if an issuer or intermediary does not resolve a problem, such as a missing refund. SEBI circulars are the best primary source for changes in IPO rules, and IPO Bulletin links to the relevant circular whenever a rule is quoted in an article.
Example: A company files its DRHP with SEBI. SEBI examines the disclosures, issues observations, and the company can then launch the IPO within the validity period, after filing the RHP with the Registrar of Companies.