FINANCIAL & IPO GLOSSARY
ASBA
A mandatory process where your bank creates a temporary block (lien) on your bid money. Funds are debited only if shares are allotted to you.
GMP
The unofficial premium over and above the issue price at which IPO shares trade before being formally listed on stock exchanges.
Demat Account
An electronic locker maintained by depositories (NSDL or CDSL) to store your securities, shares, and ETF units in digital form.
Cut-Off Price
A bidding option in book-built IPOs allowing retail applicants to agree to purchase shares at whatever final price the company discovers.
DRHP / RHP
The official regulatory document submitted to SEBI containing detailed company disclosures, past financials, risk factors, and promoter records.
AUM
The total market value of all investments and client capital that an Asset Management Company (AMC) or mutual fund manages.
SIP
An automated investment mechanism allowing you to invest a fixed sum at recurring calendar intervals to benefit from rupee cost averaging.
CAGR
The geometric progression ratio that provides a constant annual rate of return over a multi-year investment compounding horizon.
NAV
The market value per unit of a mutual fund scheme, calculated by subtracting liabilities from assets and dividing by outstanding units.