Glossary
Terms used in the notes
Terms of Indian law used in the notes, each defined in two paragraphs of our own words, stated as at a date and linked to the primary sources it rests on.
A
A digital intermediary that connects gig or platform workers with buyers of their services, which the Code on Social Security, 2020 brings within its duties.
A transaction of a corporate debtor on which the resolution professional must form an opinion, decide and file within days set by the Board's regulations.
B
The natural person who ultimately owns or controls a customer, identified by banks and other reporting entities under the Prevention of Money-laundering Act, 2002.
C
The principle that the commercial judgement of the committee of creditors on a resolution plan belongs to the committee and is not open to judicial review.
The body of financial creditors that takes the commercial decisions in a corporate insolvency resolution process, including whether to approve a resolution plan.
A person registered with the Data Protection Board through which a data principal can give, manage, review and withdraw consent, from 13 November 2026.
A promise by one party to make good a loss suffered by the other, which allocates money between the parties but does not transfer a regulatory responsibility.
Corporate insolvency resolution process (CIRP)
The time-bound process under the Insolvency and Bankruptcy Code, 2016 in which a corporate debtor is run by a resolution professional while its creditors consider a resolution plan.
D
The person that decides the purpose and means of processing personal data, and who carries the duties under the Digital Personal Data Protection Act, 2023.
The individual to whom personal data relates, who holds the rights under the Digital Personal Data Protection Act, 2023 from 13 May 2027.
A person that processes personal data on behalf of a data fiduciary, whose processing remains the fiduciary's responsibility under the Digital Personal Data Protection Act, 2023.
E
EBIDT (earnings before interest, depreciation and tax)
The measure of operating profit that regulation 229 of the SEBI ICDR Regulations tests before an SME issuer may file a draft offer document.
ECIR (Enforcement Case Information Report)
The record by which the Directorate of Enforcement opens a case under the Prevention of Money-laundering Act, 2002, which the Supreme Court has held is not an FIR.
F
A merger under section 233 of the Companies Act, 2013 between specified classes of company, approved without a scheme petition to the tribunal.
Employment for a fixed period, which the Code on Social Security, 2020 brings within gratuity after one year of service instead of five.
G
The part of an issue's proceeds not tied to a named object, which for an SME issue is capped at fifteen per cent of the amount raised or INR 10 crore, whichever is lower.
A payment to an employee for service, calculated at fifteen days' wages for each completed year and now governed by the Code on Social Security, 2020.
I
The document the resolution professional prepares on a corporate debtor so that the committee of creditors and resolution applicants can assess it.
L
A borrower with an outstanding of INR 1 crore or more, which the Reserve Bank's defaulter regime makes a large defaulter for reporting purposes.
A sum named in a contract as payable on breach, which under section 74 of the Indian Contract Act, 1872 is a ceiling on reasonable compensation.
M
A reduction in the value of shares that cannot readily be sold, argued when a minority stake is valued on a buyout or a reduction of capital.
An agency appointed to report on how an issuer uses the proceeds of a fresh issue, required for SME issues from INR 50 crore of fresh issue since March 2025.
N
A loan account classified as non-performing under the Reserve Bank's prudential norms, the classification on which a secured creditor's enforcement rights depend.
O
The part of a public issue in which existing shareholders sell their shares, as distinct from the fresh issue of new shares by the company.
The ground for relief under sections 241 and 242 of the Companies Act, 2013 where a company's affairs are conducted in a manner prejudicial or oppressive to its members.
A clause in a foreign investment giving the non-resident a right to exit, permitted subject to a lock-in and a ceiling on the exit price.
P
Fiscal support paid in step with the applicant's own spending rather than ahead of it, the basis on which Semicon 2.0 pays its capital support.
A lender's charge that, since the Reserve Bank's circular of 18 August 2023, is not an addition to the rate of interest and cannot be capitalised.
Unauthorised processing, or accidental disclosure, loss or alteration, of personal data that compromises its confidentiality, integrity or availability.
The underlying crime, listed in the Schedule to the Prevention of Money-laundering Act, 2002, from which the proceeds said to be laundered must have come.
An order under section 5 of the Prevention of Money-laundering Act, 2002 that freezes property for up to 180 days pending confirmation by the Adjudicating Authority.
A right of one shareholder to require another to buy its shares, enforceable in India if it meets the securities, exchange control and company law tests.
R
The fund under the labour codes to which transfers following retrenchment must be made within ten days.
A transaction between a listed entity and a related party, which regulation 23 of the SEBI LODR Regulations subjects to approval above a materiality threshold.
A bank, financial institution, intermediary or designated business or profession that must keep records and report under the Prevention of Money-laundering Act, 2002.
The proposal, approved by the committee of creditors and the adjudicating authority, under which a corporate debtor is taken over or restructured instead of being liquidated.
A shareholder's right to be offered shares before they are sold to anyone else, enforceable between the parties who agreed to it.
A borrower's right to recover mortgaged property by paying the dues, which under section 13(8) of the SARFAESI Act ends at publication of the sale notice, on the 2025 reading.
Government co-investment repaid by a royalty on product revenue, offered to larger companies under the design pillar of Semicon 2.0.
S
A petition to the National Company Law Tribunal under section 241 of the Companies Act, 2013 complaining that a company's affairs are conducted oppressively or prejudicially.
A lender holding a security interest, who may enforce it under the SARFAESI Act without the intervention of a court once the account is non-performing.
A data fiduciary notified into a category that carries extra duties under section 10 of the Digital Personal Data Protection Act, 2023 and rule 13 of the 2025 Rules.
W
The tribunal's power under the proviso to section 244 of the Companies Act, 2013 to let a member petition for oppression without meeting the minimum holding.
A borrower that a lender classifies as a wilful defaulter after a show cause notice and a review, under the Reserve Bank's defaulter regime.