Journals › Basic Terminologies
Depository, clearing, AML, surveillance, social stock exchange — market ki plumbing ki bhasha
Published by The Retail Trader · AUG 08, 2026 · Compliance & Regulation
Har trade ke peechhe ek rulebook hai jo aapko kabhi dikhta nahi — jab tak kuch galat na ho jaye. Ye shabd usi rulebook ke hain: depository operations, clearing aur settlement, intermediary compliance, anti-money-laundering aur social stock exchange. Source hain NISM ke Series III, VI, VII aur XXIV workbooks.
A se F tak ke terms:
• Accredited investor — Any person who is granted a certificate of accreditation by an accreditation agency-- (they are certain special type of investors whose networth exceeds a threshold and hence called by a different name).
• Achievable (A) — Realistic within the project's scope and resources.
• Adherence to these principles — Prerequisite for providing impact assessment conclusions that are relevant and sufficient, and for enabling impact assessors, working independently from one another, to reach similar conclusions in similar circumstances.
• Analysis of Information — Analyse received information in order to uncover patterns of transactions suggesting suspicion of money laundering and related crimes.
• Anti-Money Laundering — Set of procedures, laws or regulations designed to stop/curb the practice of generating income through illegal actions/ criminal activity such as drug trafficking, terrorist funding and bringing the same into mainstream.
• AoP — A group of individuals who come together for a common purpose or objective.
• Asset under advice — The aggregate net value of securities for which the investment adviser has rendered investment advice irrespective of whether the implementation services are provided by an investment adviser or concluded by the client directly.
• Awareness Gaps — Limited community understanding of long-term health benefits and the importance of maternal and reproductive care.
• Beneficiary Account — A beneficial owner's account is an ownership account. The holder/(s) of securities in this type of account owns the securities. For example, Mr. Ram who is a retail investor trades in the securities market.
• Capital market — Market for securities, where business enterprises and government can raise long term funds.
• Clearing house/corporation — Entity through which settlement of securities takes place.
• Client/Beneficial Owner Instructions — Securities should be transferred to or from a BO's account only on receipt of instructions from the beneficial owner.
• Collection of Information — Act as the central point for receiving Cash Transaction reports (CTRs), Non-Profit Organisation Transaction Report (NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on Purchase or Sale of Immovable Property (IPRs).
• Company-the beneficial owner — Natural person(s), who, whether acting alone or together, or through one or more juridical person, has a controlling ownership interest.
• Compliance with SAS — Mandatory requirement for social impact assessment conducted for social enterprises listed on social stock exchange.
• Conciliation — This is a more formal process where a conciliator (a neutral third party) works with the disputing parties to reach a mutually acceptable agreement.
• Contract note — Legal record of any transaction carried out on a stock exchange through a stockbroker.
• Corporate Bond Market — The corporate bond or corporate debt market is a market where debt securities of corporate (non-government entities, municipal corporation etc.) such as corporate bonds, debentures etc. are issued and traded.
• Credit market — Place where banks, Financial Institutions (FIs), and Non-Banking Financial Companies (NBFCs) provide short, medium, and long-term loans to corporates and individuals.
• Credit Rating Agency — Body corporate that is engaged in or proposes to be engaged in, the business of rating of securities offered by a company, including fixed deposits and credit facilities.
• Cultural Barriers — Reluctance to seek medical intervention due to cultural beliefs or misinformation.
• Custodians — Any person/entity who carries on or proposes to carry on the business of providing custodial service.
• Debenture trustee — A trustee of a trust deed for securing any issue of debentures of a body corporate.
• Delta — Sensitivity of price movement of derivative position with respect to that of the underlying.
• Dematerialisation — The model adopted in India provides only for dematerialisation of securities. This was a significant step towards achieving a completely paper-free securities market.
• Department of Economic Affairs (DEA) — Nodal agency of the Central Government for formulating and monitoring India's economic policies having a bearing on domestic and international aspects of economic management.
• Depository Participant (DP) — Registered agent of the Depository concerned, and it is through the DP that an investor gets the services of the depository.
• Depository services through — The Depositories Act, 1996 provides that the depositories provide their services to the security holder(s) through their agents called Depository Participants (DPs).
• Designated director — Person designated by the reporting entity to ensure overall compliance with the obligations imposed under chapter IV of the PMLA Act and the Rules.
• Direct Beneficiaries — These are the individuals who received cataract surgeries and their families. Their feedback provides insights into the health outcomes, the overall effectiveness of the surgeries, and the project's impact on their lives.
• DP to Indemnify Depository — A DP has to indemnify the depository, its officers and employees for all costs, fees, expenses, liabilities, taxes, actual losses and damages of any nature whatsoever suffered or incurred.
• E-warehouse receipts — Warehouse receipt means an acknowledgement in writing or in the electronic form issued by a Repository regulated by WDRA for storage of goods not owned by the warehouse keeper.
• Economic Sustainability — Ability of human communities around the world to maintain their independence and have access to the resources required to meet their needs, meaning that secure sources of livelihood are available to everyone.
• Equally important — Determination of measurable and non-measurable means of verification for KPIs by Funders in collaboration with Project Management/Social Enterprises during the preparation of the detailed project design.
• Evaluation Methods — Surveys and interviews were conducted to assess the impact of the workshops on participants' financial knowledge.
• Exit/Takeover Protocol Fund — Following the withdrawal protocol, the project's post- mid-term phase towards the exit involves a meaningful planning exercise with stakeholders and the beneficiary community.
• Facts of the case — SEBI received a few complaints from Nyaya Manch alleging manipulation in the scrip of Kwality from March to April 2018.
• Financial markets — Centre that facilitate buying and selling of financial instruments, claims or services.
• Fit and Proper Criteria — The applicant or intermediary shall meet the 'fit and proper criteria', as provided in the respective regulations applicable to such an applicant or intermediary including: a) the competence and capability in terms.
• Fraud — Inclusive of any act, expression, omission or concealment committed to induce an-other person or his agent to deal in securities.
• Free Transferability of shares — Transfer of shares held in dematerialised form takes place freely through an electronic book-entry system. This is maintained and operated by the two Depositories viz.
• Fungibility — In the depository system, the securities in dematerialised form are not identified by distinctive numbers and certificate numbers as in the physical environment.
G se P tak ke terms:
• Global Reporting Initiative (GRI) GRI — International non profit organisation which was established in 1997 in partnership with United Nations' Environment Programme (UNEP).
• Government Securities Market — The Government needs enormous amount of money to perform various functions such as maintaining law and order, justice, national defense, central banking, creation of physical infrastructure etc.
• Government Security (G-Sec) — Tradeable instrument issued by the Central Government or the State Governments.
• II. For Corporate Investors — All corporate investors have to submit the following documents as prescribed by SEBI along-with the stipulated KYC Application Form (Part I) and Account Opening Form (Part II) as per the format.
• IMP Data Categories Depth — An enterprise's contribution to the depth of an outcome by factoring in the estimated degree of change that would have otherwise happened.
• IMP Data Categories Scale — Number of people experiencing the outcome (social outcomes only) Depth: degree of change experienced by the stakeholder Duration: time period for which the stakeholder experiences the outcome.
• Impact Analysis — The success of this goal is verified by comparing economic data, such as household income and savings rates, before and after the program.
• Impact Assessment — Knowledge scores are tracked using pre- and post-surveys to measure how much participants have learned during the workshops.
• Implementation Agencies — A collection of implementation agencies or NPOs working in the same sector accessing credit for an activity that creates social impact.
• Improved market access — SSE facilitates a common and a structured meeting ground between Social Enterprises and investors/donors with inbuilt regulation for providing sanctity and accountability of finances.
• Indian Depository Receipt (IDR) — Foreign companies are not allowed to directly list on the Indian stock exchanges. However, they are allowed to raise capital in Indian currency through an instrument called Indian Depository Receipt (IDR).
• Indicators — Pre- and post-intervention surveys, economic data analysis.
• Infrastructure fund — An Alternative Investment Fund which invests primarily in unlisted securities or partnership interest or listed debt or securitized debt instruments of investee companies or special purpose vehicles engaged in or formed.
• Infrastructure Gaps — Limited healthcare facilities and equipment in remote areas.
• Inherent Limitation — This report in no way should be construed as an opinion, attestation, certification or other form of assurance.
• Institutional Transaction — Transaction done on behalf of institutional investors.
• Insurance — DPs should take appropriate insurance cover to insure against the losses arising from any possible business risk and system failure. The depository, however takes insurance for itself and on behalf of all DPs.
• Intended Users — Person, persons or class of persons for whom the social impact assessor prepares the social impact assessment report.
• Investigation Procedure — (i) As per Section 212 (1) of the Companies Act, 2013, the Central Govt.
• Investment adviser — Any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons and includes a part- time investment adviser or any person who holds out himself.
• KYC — The procedure prescribed by SEBI for identifying and verifying the proof of address and identity and compliance with rules, regulations, guidelines, and circulars issued by SEBI or any other authority for Prevention of Money.
• KYC and Other Documents — Acronym for "Know your Client", a term commonly used for Customer Identification Process.
• Learning Objective — After studying this chapter, you should know about.
• Local Government Representatives — These include Panchayat members and district officials who support the project by facilitating access to rural communities and assisting in resource allocation.
• Logistical Challenges — Difficulty in reaching remote villages for screenings and surgeries.
• Means of Verification — Conducting surveys before and after the intervention to assess the changes in economic knowledge and activities of the participants.
• Minimal registration cost — SSE saves cost for both issuer and investor/donor by charging minimal fees for registration and listing.
• Mis-selling — Sale of securities or services relating to securities market by any person, directly or indirectly, by─ (i) knowingly making a false or misleading statement, or (ii) knowingly concealing or omitting material facts, or (iii).
• Money Market — Integral part of the financial system and includes instruments that provide short-term funds with maturity ranging from overnight to one year.
• Multi-Depository System — The Depositories Act, 1996 provides for a multi-depository system.
• Net Worth — SEBI (Depositories & Participants) Regulations, 2018 prescribe a minimum net worth criteria for different kind of applicants: Applicants who are stock brokers are required to have a networth of Rs.
• Netted obligation — All purchase and sell transactions will be netted to determine the obligations. Member will have the obligation to deliver a security in a settlement only if the sell quantity is more than buy quantity.
• Network through which continuous electronic — Of communication are established between the depository, participants, issuers and issuers' agents, is secure against unauthorised entry or access.
• NGO DARPAN — Online platform by NITI Aayog, in collaboration with the Ministry of Home Affairs and the Ministry of Electronics and IT, providing a centralized database of NGOs in India.
• NGOs and Healthcare Partners — Organisations involved in healthcare delivery and eye care, providing a broader perspective on challenges and best practices in addressing eye health needs in remote areas.
• Outcome Funders — Investors interested in creating social impact in the same sector as the implementation agencies. They will pay out based on the social impact resulting from activities of the implementation agencies.
• Outputs — Key Deliverables Several key outputs were planned to ensure the success of the project.
• Partner Organisations — NGOs and healthcare entities that collaborated with Sakhi to improve healthcare delivery in remote areas. Data collection methods included Key Informant Interviews (KII), Focus Group Discussions (FGD), and quantitative surveys.
• Partnership firm-the beneficial owner — Natural person(s) who, whether acting alone or together, or through one or more juridical person, has ownership of/.
• Persons associated with investment advice — Any member, partner, officer, director or employee or any sales staff of such investment adviser including any person occupying a similar status or performing similar function irrespective of nature of association.
• Portfolio Manager — Intermediary which manages and controls the investments of its clients in the complex securities markets.
• Pre-Conciliation — This is an initial stage where the Market Infrastructure Institution (MII) facilitates an amicable discussion between the investor and the intermediary / listed company / regulated entity (Market Participant).
• Pre-project Implementation Fund — This fund supports the activities mentioned in point vi of 6.2, laying a robust foundation for the project's effective implementation.
• Primary market — Market that ensures availability of adequate capital at reasonable rates to finance expansion, diversification or consolidation of companies.
• Private equity fund — An Alternative Investment Fund which invests primarily in equity or equity linked instruments or partnership interests of investee companies according to the stated objective of the fund.
• Prohibition of Assignment — No DP can assign or delegate its functions as a depository participant to any other person without prior approval of the depository in which it is a participant.
• Project Title — Empowering Rural Women: A Financial Literacy Initiative.
R se W tak ke terms:
• Rating — An opinion regarding securities, expressed in the form of standard symbols or any standardised manner, assigned by a credit rating agency and used by the issuer of such securities, to comply with the requirement specified.
• Reconciliation — The DP should reconcile its records with its depository on a daily basis.
• Record of Services — The DP should maintain and preserve the following records and documents for a minimum period of 8 years as per provisions given in the SEBI (Depositories and Participants) Regulation, 2018, and make them available for inspection.
• Relevance in Social Impact Assessment — The alignment of an initiative's objectives with the identified needs and priorities of the target population or community.
• Research and Analysis — Monitor and identify strategic key areas on money laundering trends, types and developments.
• Resource Constraints — Limited funding for long-term sustainability, particularly for post- surgery care.
• Responsible Business Conduct — Globally recognized concept founded on the idea that businesses can perform better when engaged in re-vitalizing the society from which they extract resources for production.
• Responsible Party — Person (or persons) of the social enterprise who are involved in implementing the social project.
• Retail Investors — An individual investor who applies or bids for specified securities for a value of not more than INR 2 lakhs.
• Right Entitlement Trading — Right given to eligible shareholders to apply for new shares in a rights issue, in proportion to their existing shareholding.
• Risk Based supervision — Process of assessment of members by the Exchanges on a half yearly basis.
• Risk Investor — These investors provide the upfront capital for desired outcomes and carry the risks of achieving outcomes.
• Sample Size Sampling — Process of selection of a part of the population or universe to engage interact, assess, and obtain feedback about the social project.
• Scrip sigma — The volatility of the security computed as at the end of the previous trading day.
• Separate Accounts — The DP should open a separate account in the name of each beneficial owner. The securities of each BO should be segregated from the securities of other beneficial owners or from the DP's own securities.
• Short Selling — Selling a stock that the seller does not own at the time of the trade.
• Shri Anand Piramal — Son of the Chairman and Managing Director, Appellant No.
• SME fund — An Alternative Investment Fund which invests primarily in unlisted securities of investee companies which are SMEs or securities of those SMEs which are listed or proposed to be listed on a SME exchange or SME segment.
• Smurfing — Small amounts of money below the AML reporting threshold are inserted into bank accounts or credit cards and used to pay expenses, etc.
• Social audit — Process that enables an organization to assess and demonstrate its social, economic, and environmental benefits and limitations.
• Social impact assessment — Systematic evaluation of an organization's social, ethical, cultural and environmental performance.
• Social impact assessment engagement — Process that involves collecting data, engaging with stakeholders, and analysing the organization's performance against its stated objectives and activities.
• Social impact assessor — An individual registered with Self-Regulatory Organisation (SRO) under the Institute of Chartered Accountants of India (ICAI) or such other agency, as may be specified by the Securities and Exchange Board of India (SEBI), who has.
• Social Sustainability — Ability of a society to uphold universal human rights and meet 14 Freeman.
• Social venture — A trust, society or company or venture capital undertaking or limited liability partnership formed with the purpose of promoting social welfare or solving social problems or providing social benefits and includes,- (i) public.
• Specialized Investment Funds (SIFs) — Category of investment vehicles introduced by SEBI in India to bridge the gap between Mutual Funds and Portfolio Management Services (PMS).
• Stock Exchange — A body of individuals or a body incorporated under the Companies Act to assist, regulate, or control the business of buying, selling, or dealing in securities.
• Theory of Change — Structured and systematic approach to link activities to their impact.
• Trade — Transactions will not be netted to determine obligations. Member's security pay-in obligation will be equivalent to cumulative sell quantity and security pay-out will be equivalent to cumulative buy quantity.
• Trade allocation specifically — This process, or more specifically, how the trade is allocated (pro rata, all or nothing, etc).
• Trade-based money laundering — The process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimise their illicit origins.
• Underwriter — Is a person who engages in the business of underwriting of the issue of securities of a body corporate.
• VaR Margin — Margin intended to cover the largest loss that can be encountered on 99.9% of the days (99.9% Value at Risk).
• Vault Manager — Any person who carries on or intends to carry on the business of providing vaulting services3.
• Warehouse — Any premises (including any protected place) conforming to all the requirements including manpower specified by the Authority by regulations wherein the warehouse keeper takes custody of the goods deposited by the depositor.
• Warehouse receipt — An acknowledgement in writing or in the electronic form issued by a Repository regulated by WDRA for storage of goods not owned by the warehouse keeper.
Compliance boring lagta hai kyunki wo tab tak invisible rehta hai jab tak kaam kar raha ho. Jis din wo fail hota hai, yahi shabd aapke complaint letter mein kaam aate hain.
Is journal ke terms aur definitions NISM ke apne certification workbooks se liye gaye hain, sirf educational reference ke liye — ye koi official NISM material nahi hai aur na hi koi buy ya sell recommendation. Regulations aur limits SEBI time-time par badalta hai, isliye exam ya compliance ke liye hamesha NISM ka latest workbook hi authority hai.