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
     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