HOSTIE TAKE-OVER

That goes against the wishes of the target companys management and Board of Directors. A company which makes a HT bid on a target company is called BLACK KNIGHT A potential acquirer who is sought out by a target companys management is called WHITE KNIGHT HP Is a contract of owner-hirer & after the contract ownership is passed to the hirer on payment of amount -----assets appear in the balance Sheet of the hirer & he claims depreciation HARD CIRRENCY A currency that does not normally depreciates against other currencies over time. D-mark & Swiss franc are favorable, to some extent Euro also HEDGE A means of reducing the risk of loss from future price movements. HURDLE RATE The rate of return that is to be achieved by an investment for it to be considered as success.. This may be COST of FUNDS, RETURN ON EQUITY

IFR (Investment Fluctuation Reserve)

5 pc of the portfolio size ( AFS / HFT ) in 5 years and 10 pc in 10 years ( 2003 )

Insider Trading
Act of buying / selling securities with access to privilege information

I T Act
Providing regulatory structure for internet & e-commerce --- Legal sanctity to digital signature & electronic records IMF A finance institution set by BRETTON WOODS agreement. It was designed to enable member countries to borrow from each other in order to iron out irregularities in their exchange rates and RESERVES. Conditions are required to meet strict financial and economic conditions if they want to become borrowers. INTERNAL RATE OF RETURN The rate at which future cash flow has to be discounted to give an amount exactly equal to the investment in the project. If the IRR is higher than the interest that could be earned from leaving the money in a bank then the project would appear to be a reasonable one. INVESTMENT BANK A bank which specializes in providing companies with advice on how to fund their investment plans. Much of these advices relate to M & A. In general they do not lend money themselves. But they do organizes the issue and sale of securities on behalf of their corporate clinets. JUNK BONDS A bond issued by a company in U S whose Credit rating is below the so

called investment grade. LOK ADALAT The concept is to settle the due of the bank in an inexpensive way with the mutual consent of ban / borrower ( upto Rs 20 lacs ) It was established by the Govt. to settle disputes through the conciliation and compromise, and which are pending in different courts. The first L A was set up in Chennai. It is presided over by a sitting or retired judicial officer as the Chairman, with two other members, usually a lawyer and a social worker. There is no court fee. If the case is already filed in the regular court, the fee paid will be refunded if the dispute is settled at the L A. The procedural laws, and the Evidence Act are not strictly followed while assessing the merits of the claim by the L A. The decision of L A is binding on both parties and the order is capable of execution through the legal process. No appeal lies against the order of the L A Loan syndication J V Shetty to review the system of Consortium Lending --Banks are free to adopt syndication route,Irrespective Of the quantum involved, if arrangement suits to the borrower & financing banks, --Choice bank is referred as Lead / Mandated Bank It prepares Info memorandum ( details of Project and Credit required ), --LB/MB distributes it to the prospective lenders. They Make independent assessment. LB/MB convenes a Meeting to decide syndication strategy, --Someone is appointed Agent Bank. Borrower gives Prior notice of his funds requirements. Agent bank ets documented signed or single separately. Each bank deposits share with the Agent, --When enforcement of securities becomes necessary Each member bank pursues its own remedy, --DIRECT LENDING --THROUGH PARTICIPATION --It provides more flexibility / convenience to both LETTER OF CREDIT An arrangement whereby a BANK makes FUNDs available to a CUSTOMER in a foreign country. The bank debits the customers at the same time as it send a letter to a suitable bank abroad asking it to give the customer credit. A L/C is useful for the finance of trade as well as of foreign travel. LETTER OF INTENT A LETTER FORMALLY EXPRESSING AN INTENTION TO TAKE A PARTICULAR COURSE OF ACTION. It is not legally binding provided it is written in a way that makes it clear that it is intended not to be; it merely indicated that something is being contemplated