IPO Initial Public Offering

It is the process by which a private company can go public by sale of its

stocks to general public. Any old or new company can raise the equity capital
by issuing IPOs. Any company issuing IPOs is known as Issuer.
Equity
The value of ownership of a business or property after all the amounts,
liabilities or debts have been paid.
Stocks
They represent ownership in a business.
SEZ
A Special Economic Zone (SEZ) is a geographical region that has economic
laws that are more liberal than a country's domestic economic laws. India has
specific laws for its SEZs. 491 SEZs have been formally approved by SEZ Act,
2005.
The objectives of SEZs can be explained as:
1. Generation of additional economic activity;
2. Promotion of exports of goods and services;
3. Promotion of investment from domestic and foreign sources;
4. Creation of employment opportunities;
5. Development of infrastructure facilities.
The incentives and facilities available to SEZ developers include:
1. Exemption from customs/excise duties for development of SEZs for
authorized operations approved by the BOA.
2. Income Tax exemption on income derived from the business of development
of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the
Income Tax Act.
3. Exemption from minimum alternate tax under Section 115 JB of the
Income Tax Act.
4. Exemption from dividend distribution tax under Section 115O of the
Income Tax Act.
5. Exemption from Central Sales Tax (CST).

6. Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ
Act).
FII - Foreign institutional investors
Foreign institutional investors (FIIs) are those institutional investors which
invest in the assets belonging to a different country other than that where
these organizations are based. Foreign institutional investors play a very
important role in any economy. These are the big companies such as
investment banks, mutual funds etc., who invest considerable amount of
money in the Indian markets. With the buying of securities by these big
players, markets trend to move upward and vice-versa. They exert strong
influence on the total inflows coming into the economy. Market regulator SEBI
(Securities Exchange Board of India) has over 1450 foreign institutional
investors registered with it. The FIIs are considered as both a trigger and a
catalyst for the market performance by encouraging investment from all
classes of investors which further leads to growth in financial market trends
under a self-organized system.
ECGC Export Credit Guarantee Corporation (limited) of India
The ECGC Limited (ECGC) was established on 30 July 1957 with an objective
to provide insurance cover in respect of risks in export trade. These risks may
include loss of money on account of foreign buyer becoming bankrupt or
sudden import or exchange restrictions resulting in stopping of payments etc.
The Export Credit Guarantee Corporation of India Limited is a company
wholly owned by the Government of India based in Mumbai, Maharashtra. It
provides export credit insurance support to Indian exporters and is controlled
by the Ministry of Commerce.
What does ECGC do?
1. Provides a range of credit risk insurance covers to exporters against loss
in export of goods and services.
2. Offers Export Credit Insurance for Bankers and financial institutions to
enable exporters to obtain better facilities from them.
3. Provides Overseas Investment Insurance to Indian companies investing
in joint ventures abroad in the form of equity or loan.
How does ECGC help exporters?
1. Offers insurance protection to exporters against payment risks
2. Provides guidance in export-related activities

3. Makes available information on different countries with its own credit

ratings
4. Makes it easy to obtain export finance from banks/financial institutions
5. Assists exporters in recovering bad debts
6. Provides information on credit-worthiness of overseas buyers
CASA
The CASA (current and savings account) ratio is the ratio of deposits in
the current and savings accounts of a bank to its total deposits. A high CASA
ratio indicates that a higher portion of the banks deposits come from current
and savings accounts. This means that the bank is getting money at low cost,
since no interest is paid on the current accounts and the interest paid on
savings account is usually low.
Current and Saving Accounts are demand deposits and therefore pay lower
interest rates compared to term deposits where the rates are higher. Thus
higher CASA ratio means that more of the money deposited in the bank is in
the demand deposits i.e. the CASA, thus bank is getting the money at lower
cost.
KYC Form Know Your Customer/Client Form
Know your customer (KYC) is the process used by a business to verify the
identity of their clients. Know your customer policies are becoming
increasingly important globally to prevent identity theft, financial
fraud, money laundering and terrorist financing. The objective of KYC
guidelines is to prevent banks from being used, intentionally or
unintentionally, by criminal elements for money laundering activities. Related
procedures also enable banks to know or understand their customers, and
their financial dealings better. This helps them manage their risks prudently.
Banks usually frame their KYC policies incorporating the following four key
elements:
1. Customer Policy;
2. Customer Identification Procedures;
3. Monitoring of Transactions; and
4. Risk management.