Voltage regulator ICs (78xx series) provide a steady output voltage, as against a widely fluctuating input supply, when the common terminal is grounded. Any voltage about zero volt (ground) connected in the common terminal is added to the output voltage. That means the increase in the common terminal voltage is reflected at the output. On the other hand, if the common terminal is disconnected from the ground, the full input voltage is available at the output. This characteristic is utilised in the present circuit..