Fair market value on 31 January 2018
Regulation & taxFor anything listed on 31 January 2018, the highest price quoted on a recognised stock exchange that day — or on the last preceding day it traded; the net asset value of that date is used only for a unit that was not then listed.
In plain terms
Published historical data that will never change again, and worth writing down once for every holding older than February 2018. It is a ceiling on the substituted cost, not an alternative purchase price you may use in either direction.
Holding company discount
Fundamental analysisAlso called: Holdco discount
The gap between a holding entity’s market value and the value of the stakes it owns.
In plain terms
Real, persistent, and it needs a catalyst to close. Being right without one pays nothing.
Home bias
Risk & psychologyThe tendency to hold far more of your own country's equity than its share of global market value would justify.
In plain terms
Partly rational, since you earn and spend in rupees. The problem is that a wholly domestic portfolio stacks your job, your property and your savings on one economy, one currency and one regulatory regime.
Perquisite tax
Regulation & taxTax at your slab rate on the difference between the market value of employer shares at vesting or exercise and what you paid, treated as salary income.
In plain terms
The first of the two taxable events, and the one that catches people. You owe cash on a paper gain before you have sold anything — particularly harsh at an unlisted startup where there is nobody to sell to.