Glossary

A futures market where further dated delivery months trade at a discount to the near month. Also, where a bid is higher than an offer.

In futures market, when a commodity is in shortage, causing near month contract to sell at a premium and distant month contract to sell at a discount i.e. spot price of the commodity is higher than the forward price.

Balanced fund is the fund that invests in equity, bond and money market instruments. This fund is made for those investors who seek both capital appreciation and regular income.  

An Indian form of trading in which the contract price is not allowed to go beyond floor and ceiling prices, set on the first day, throughout the life of the contract, thus restricting excessive volatility.

Bankers to the issue, as the name suggests, carries out all the activities of ensuring that the funds are collected and transferred to the Escrow accounts. The Lead Merchant Banker shall ensure that Bankers to the Issue are appointed in all the mandatory collection centers as specified in DIP (Disclosure and Investment Protection) Guidelines 2000. The LM also ensures follow-up with bankers to the issue to get quick estimates of collection and advising the issuer about closure of the issue, based on the correct figures.  

Basis is price difference between a cash contract and a futures contract.

After the closures of the issue, the bids received are aggregated under different categories i.e., firm allotment, Qualified Institutional Buyers (QIBs), Non-Institutional Buyers (NIBs), Retail, etc. The over subscription ratios are then calculated for each of the categories as against the shares reserved for each of the categories in the offer document. Within each of these categories, the bids are then segregated into different buckets based on the number of shares applied for. The over subscription ratio is then applied to the number of shares applied for and the number of shares to be allotted for applicants in each of the buckets is determined. Then, the number of successful allottees is determined. This process is followed in case of proportionate allotment. In case of allotment for QIBs, it is subject to the discretion of the post issue lead manager.  

Basket symbolizes a group of stocks formed to do simultaneous buying and selling of all stocks in the Basket usually to perform index arbitrage or a hedging program.  

Bearer share is a negotiable share, which is the asset of the person who possesses it at any given time. It is on the name of the bearer & not in the name of a particular person. The issuing company does not maintain any record of ownership of such share.

Below par means having current price below the face value