onomi on epts and erminolo ies 22.13
will fall below the intrinsic value of the share and country is found to export at below fair market
there is a prospect of future profit out of the share. price (it means the exporting nation is dumping
the item in the importing nation) is known as
core investment compAnies (cics) ‘anti-dumping’ duty.
Both of the duties are imposed after fulfilling
A NBFC carrying on the business of acquisition
the proper provisions of investigation conducted
of shares and securities which satisfied the
conditions: it holds not less than 90 per cent of as per the specifications of the WTO.
its total assets in this form; its investments in the
equity shares in group companies constitutes not creAtive Destruction
less than 60 per cent of its total assets; it does not The process by which an innovative entrepreneur
trade in its investments in shares, debt or loans in takes risks and introduces new technologies
group companies except through block sale for the
to stimulate economic activity, replacing old
purpose of dilution or disinvestment; and it does
technologies is known as ‘creative destruction’. As
not carry on any other financial activity except
per Schumpeter, Joseph A. (1883–1950), creative
investment in bank deposits, money market
destruction is the key to economic growth. But
instruments, government securities, loans to and
due to irregularity in such innovations, business
investments in group companies.
cycle is followed by both collapse and crisis (J. A.
Schumpeter, Capitalism, Socialism and Democracy,
corporAte sustAinibility inDex
The Bombay stock Exchange (BSE) has proposed
to come out with a corporate sustainability index crony cApitAlism
(CSI)—a possible new stock exchange which will
be created for developing trust marks to denote a An approach of doing business when the firms look
corporate’s sustainability achievements. This will after themselves by looking after their own people
be the first such index in Asia. (i.e., families and friends). Used in negative sense.
correction cross subsiDy
A term usually used in stock market which shows a The process of giving subsidy to one sub-area and
reversals of share prices in reaction to an excessive fulfilling it through the profits from the other sub-
rise or fall of the past. area. As for example, in India kerosene oil is cross-
subsidised against petrol and aviation fuel.
Countervailing duty (CVD) is imposed by the
importing nation on imports if the exporting This is a method of mobilising finance/fund.
nation is found to offer export subsidies to their Crowd-funding refers to the collective effort
exports. This measure aims at balancing the price of individuals who pool money—mostly
of imports with the domestic products. This duty through the Internet—to support start-ups.
is imposed in such a way that imported item also There are two basic forms of crowdfunding—
remains competitive. ’community’ crowdfunding and ‘financial return’
Similar duty, with the same aim, once imposed crowdfunding. The former includes donation-
by the importing nation in case the exporting based concepts (donators get no financial retuns