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 8 terms
An insurer’s available solvency margin divided by the margin the regulator requires, published quarterly against a floor that has stood at 1.5.
The number that speaks to whether the company will exist in year twenty-nine of a thirty-year policy. Check it once a year to notice drift, not to trade on.
India’s Insolvency and Bankruptcy Code, governing time-bound resolution of defaults.
Faster and more predictable than the old regime, and promoters are generally barred from bidding for their own company.
A formal process for resolving a company that cannot pay its debts.
Equity ranks last. When lenders take haircuts, there was nothing left below them.
The part of India's insolvency code dealing with individuals, brought into force at the time of writing only for a narrow class — personal guarantors to corporate debtors — and not for ordinary borrowers.
No modern personal-bankruptcy discharge is available to an ordinary Indian borrower. Older insolvency legislation remains unrepealed but is slow and very rarely used. A live area of policy, and one to check rather than assume.
A fall in the number of participants in an industry as capacity is retired, acquired or resolved through insolvency, leaving the survivors facing less competition.
The tell that it is actually working is that realisations stop falling before volumes recover — price discipline needs only a decision, demand needs a cycle.
The statutory order in which claims are paid in an insolvency.
Costs, secured creditors, workers, unsecured creditors, government, then equity. Equity usually gets nothing.
Funding an asset that returns cash over years with a liability repayable in months, so the borrower must return to the market repeatedly before the asset has paid for itself.
It leaves solvency untouched and hands liquidity to somebody else to decide. A company can be worth far more than it owes on every valuation and still fail on a date.
The removal of a subsidiary from consolidated accounts, line by line, when control over it is lost — with any retained interest recognised at fair value and the resulting difference taken to profit or loss.
Revenue leaves and so do the borrowings, which reads as deleveraging with no repayment. It also happens when a subsidiary enters insolvency and a resolution professional displaces its board.