Issue Price
It is the price at which new issues are offered to the public, at par, or at a premium, i.e., at a price above the face value. The issue price is fixed in consultation with the lead manager, which may be a bank or a financial institution. If there is a premium, the company is required to state in the prospectus for the public and in issue advertisement as well what premium the erstwhile CONTROLLER OF CAPITAL ISSUES would have permitted. The trend now is to fix a premium at as high a level as the investors can be made to accept, as if premium is a matter of company prestige.
IBRD
International Bank for Reconstruction and Development, also known s the World Bank. An agency of the United Nations, it was established in 1945 with object of financing postwar reconstruction and help raise the standard of living of he developing countries. It gives loans to governments and guarantees outside loans. Its funds are raised from contributions of member countries and bonds issued in the money markets. In sanctioning loans the bank examines the financial health of the recipient country, and may insist on change in the economic policy pursued by its government, the long – tem objective being making the recipient country economically developed and loan – independent.
Income Tax Rebate
The various opportunities for gaining rebates are now curtailed. Under Section 80L interest and dividend income up to Rs 7,000 is exempted from income. Under Section 80 investments in approved schemes like the NSS, NSC, Public Provident Fund, LIC Schemes, etc. will qualify for a 20% rebate on the gross tax up to a savings limit of Rs 60,000. Sections 80CC, 80CCA, and 80CCB have been abolished. Equity – linked savings schemes up to an investment of Rs 10,000 are included in the overall limit of Rs 60,000.
Index Fund
Mutual fund whose portfolio of shares is identical to a well – known index, such as the BSE Sensitive Index or the BSE National Index. Such an investment policy reflects the belief that trying to beat the market index over the long term in futile, and it is best to keep up with the market.