INTEREST RATE RISK

INTEREST RATE RISK

Volatility in the interest rates which results in the changes in return from the market thus changing the value of asset.

INFLATION RISK

INFLATION RISK

This is a risk linked to inflation, that reduces purchasing power and undermines returns. 

INFRASTRUCTURE BONDS

INFRASTRUCTURE BONDS

These are bonds issued by the government or government authorized corporations to fund infrastructure projects. Additionally certain Banks are also allowed to issue such bonds against the infrastructure funding that they do 

ISSUE PRICE

ISSUE PRICE

The value of a security when it is first issued in the market.

INFORMATION MEMORANDUM

INFORMATION MEMORANDUM

 The offered document which contains the disclosures of Companies Act, 2013 and the rules thereof, also includes summary of term sheets, material updates including ratings, rationales, financial ratios as specified in schedule I, indicating pre and post issue changes.

ISSUE DATE

ISSUE DATE

The date on which new security is traded or a bond starts to accrue interest is the issue date.

INTEREST SERVICE COVERAGE RATIO

INTEREST SERVICE COVERAGE RATIO

Ratio used to determine the ability of a company to be able to make interest payments on all outstanding debts.

INITIAL PUBLIC OFFERING

INITIAL PUBLIC OFFERING

Process of offering/selling securities (shares or bonds) of the company to the public in the primary market.

INTERNAL RATE OF RETURN

INTERNAL RATE OF RETURN

It is a discount rate which brings down the value of future investments to present value and thus is helpful to calculate the profitability of potential investments.

INDEX LINKED BOND

INDEX LINKED BOND

Index linked bonds are the bonds which are linked to a certain index such as inflation rate to adjust interest rate to the inflation.

ISSUER

ISSUER

In a bond market, the issuer of the bond is the borrower (can be government/ corporate/private company), raising a definite sum of money from potential investors at a certain interest rate.

ICCL

ICCL

ICCL is acronym of Indian Clearing Corporation Limited is wholly owned subsidiary of BSE Ltd. It a clearing house and carries out the function of clearing, settlement, collateral management and risk management for various segments of BSE. It act as a central counterparty to all the trade.

INTEREST

INTEREST

Compensation paid or to be paid for the use of borrowings, generally expressed in terms of annual percentage rate.

INVESTMENT GRADE BOND

INVESTMENT GRADE BOND

Bonds that have high credit worthiness, hence a lower risk of default.

ISIN

ISIN

An International Securities Identification Number is a unique identification alpha numeric code allotted for each security in the depository system by SEBI.