Recovery
Risk & psychologyRebuilding capital and process after a significant drawdown.
In plain terms
Restart at a quarter size and judge yourself on twenty rule-following trades, not on getting back to the old peak.
1492 terms
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.
Showing 17 terms
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Recovery agent
Regulation & taxA third party engaged by a lender to pursue collection, whose conduct remains the responsibility of the lender that engaged it.
In plain terms
Arguing with the agent achieves nothing. The complaint lies against the regulated lender, which cannot answer it by disclaiming the agency it appointed.
Recovery period
Risk & psychologyThe time taken to climb from a drawdown low back to the previous high.
In plain terms
Depth frightens people; duration breaks them. Most investors quit in year four of a long recovery, not at the bottom.
Recovery time objective
Regulation & taxAlso called: RTO
The maximum time within which operations must be restored after a disruption — set at 45 minutes for market infrastructure institutions under SEBI’s business continuity framework.
In plain terms
A target placed on the exchange, not a promise made to you. When the exchange itself halts, no contingency route helps — nothing trades, for anybody, until the session resumes.
Debts Recovery Tribunal
Regulation & taxAlso called: DRT
The forum that hears challenges to enforcement measures taken under the security enforcement law, and lenders' own recovery proceedings above a threshold. Civil courts are barred from these matters.
In plain terms
The first application there matters far more than the appeal, because an appeal beyond it requires depositing a large part of the claimed debt before it will be heard.
Loan write-off
AccountingRemoving a loan from the balance sheet once it is regarded as unrecoverable, normally after it has been fully provided. Recovery efforts usually continue afterwards.
In plain terms
It brings in nothing and changes nothing about what was lost. What it changes is what the bad-loan percentage looks like — so add write-offs back to both the impaired loans and the book before comparing two lenders.
Risk of ruin
Risk & psychologyThe probability that losses reduce capital to a point from which recovery is impractical.
In plain terms
A positive-expectancy system can still destroy an account. Position size decides which.
Structural decline
Fundamental analysisA permanent fall in demand or economics that no recovery in the cycle will reverse.
In plain terms
The river moved, rather than the rain failing. Waiting is the most expensive possible response.
Compulsory delisting
Regulation & taxRemoval of a company from an exchange for persistent non-compliance, with the promoters required to acquire the public shareholders’ shares at a value fixed by an independent valuer.
In plain terms
Not a sale but a recovery process, run on notices rather than on screens. The chart usually stopped months earlier, when the security was suspended.
Dry powder
Risk & psychologyCash or liquid funds held back specifically to be deployed into a decline.
In plain terms
Only genuine when the deployment levels are written down beforehand. Vague intent to buy the fall reliably turns into buying after the recovery is obvious.
Investor Protection Fund
Regulation & taxAlso called: IPF
An exchange-maintained fund compensating claims against a defaulting member, up to a limit.
In plain terms
A backstop, not a guarantee of full recovery.
Morning star
Technical analysisA three-candle bullish reversal: a large red candle, a small indecisive one, then a large green one.
In plain terms
Panic, pause, recovery. The anatomy of most bottoms.
Pledge
Trading & ordersMarking securities as collateral, typically for margin.
In plain terms
Pledged shares are encumbered, which complicates recovery if a broker fails.
Reserve Bank Integrated Ombudsman Scheme
Regulation & taxAlso called: RBI Ombudsman
A free complaint forum for deficiency in service by banks, non-banking financial companies and other entities the Reserve Bank regulates, available once the lender has rejected a complaint or left it unresolved for a defined period.
In plain terms
It addresses conduct, charges and wrong reporting. It does not waive a debt, rewrite a loan or halt lawful recovery, and filing there hoping it will is a wasted month.
Secured debenture
Market basicsA debenture with specific assets charged against it.
In plain terms
It improves your place in the queue. It does not guarantee recovery — check what the security actually is.
Segregated portfolio
Market basicsAlso called: Side pocket
A side pocket created on a credit event, carving the affected security into separate units issued to everyone holding on that day.
In plain terms
It exists so that whoever redeems first cannot exit at a NAV still valuing a bond nobody can sell, leaving the loss with whoever stayed. Any later recovery is paid to the segregated units.
Unregulated deposit scheme
Regulation & taxAccepting deposits outside every regulated category, banned outright by a 2019 Act that lists the deposit schemes which remain lawful.
In plain terms
The Act lets authorities attach assets and repay depositors through designated courts. Worth knowing it exists, and worth knowing that recovery is a fraction and takes years.