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
the depository (National Securities Depository
Ltd.–[NSDL] or Central Securities Depository
Ltd.–[CSDL]). The investor needs to fill up the
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.
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