Haircut
Market basicsThe percentage deducted from the value of pledged collateral when computing available margin.
In plain terms
Pledge ₹1,00,000 with a 20% haircut and you get ₹80,000 of margin. Haircuts widen exactly when markets get volatile.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Insolvency
Regulation & taxA formal process for resolving a company that cannot pay its debts.
In plain terms
Equity ranks last. When lenders take haircuts, there was nothing left below them.