onomi     on epts and erminolo ies       22.15
                                                         mutual funds, pension funds and insurance (life)
        DeinDustriAlisAtion                              companies are the major ones in India.
     Sustained decrease in the share of the secondary
     sector in the total output (GDP) of an economy.         Direct cost
                                                         The direct material and labour cost of a product–
        DemAt Account                                    proportionally varies with the total output.
     It is a way of holding securities in electronic or
     dematerialised form. Demat form of shares can           Direct investment
     be traded online. As such, the transactions are     The expenditure on physical assets (i.e., plant,
     concluded much faster, which prevents theft,        machinery, etc.).
     misuse, forging of original shares certificates or
     other documents, and allows an investor to buy or       Dirty floAt
     sell shares in any quantity. Demat account allows
     for faster refund of money in case application      A term of foreign exchange managment when a
     is not accepted. Demat accounts are offered by      country manipulates its exchange rate under the
                                                         floating currency system to take leverage in its
     banks, and the dematerialised stock is held by
                                                         external transactions.
     the depository (National Securities Depository
     Ltd.–[NSDL] or Central Securities Depository
     Ltd.–[CSDL]). The investor needs to fill up the
                                                             Discount house
     requisite forms, submit the documents and pay       A financial institution specialising in buying and
     the applicable charges in order to have the demat   selling of short-term (i.e., less than one year)
     account opened.                                     instruments of the money market.
        Demerger                                             Disgorgement
     The breaking-up of a company into more separate     Disgorgement is a common term in developed
     companies. Such companies are usually formed        markets across the world, though for most
     through mergers.                                    market participants in India it is a new thing.
                                                         Disgorgement means repayment of illegal gains
                                                         by wrongdoers. Funds that were received through
                                                         illegal or unethical business transactions are
     The financial assets that ‘derive’ their value from ‘disgorged’, or paid back, with interest to those
     other assets, such as shares, debentures, bonds,    affected by the action. It is for the first time in
     securities, etc.                                    India that the capital markets regulator, SEBI has
                                                         passed this order of disgorgement; internationally
        Diis                                             it is the civil courts that have this mandate along
                                                         with the markets regulator.
     Domestic Investment Institution (DIIs) are the            Disgorgement is a ‘remedial’ civil action,
     financial institutions of Indian origin investing   rather than a ‘punitive’ civil action. In the US,
     in India is different derivatives such as share,    individuals or companies that violate Securities and
     securities, corporate bounds, etc. They may         Exchange Commission regulations are typically
     be public/govt. owned or privately owned—           required to pay both civil money penalties and