Subscription Right

The right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock. Most states consider preemptive rights valid only if made explicit in a corporation's charter. also called subscription privilege or preemptive right.

Risk Reversal

An indicator of the volatility difference between a call option and a put option. Risk reversal is used because it is more helpful in this situation to see the volatility rather than the price. A high risk reversal indicates that the call option is more volatile than the put option, and the opposite is true for a low risk reversal. This information is used by investors to get a reading on the markets, and to help them decide how to invest.

An authorized dealer is liable to deduct tax as per section 204(iia)

An authorized dealer is liable to deduct tax as per section 204(iia) only if foreign exchange asset sold by it is a long term capital asset.


Special provisions having been made in clause (iia) of section 204 to cover a specific fact-situation, it will override the general provision made in clause (iii) of section 204 - [2010] 8 TAXMANN.COM 166 (MUM. - ITAT)

No interest income would accrue to an NBFC on ICD which has become an NPA

No interest income would accrue to an NBFC on ICD which has become an NPA in accordance with provisions of section 45Q of RBI Act and Prudential Norms issued by RBI in exercise of its statutory powers


Under the provisions of section 45Q it is mandatory on the part of the assessee-NBFC not to recognise the interest on the ICD, which has become an NPA, as income having regard to the recognized accounting principles - [2010] 8 TAXMANN.COM 145 (DELHI)

Quanto Option

Option in one currency, but which pays out in another. Quanto options are usually used in cases when investors are confident of the underlying asset's performance, but are not confident of the performance of the currency which the underlying is denominated in.

Circus Swap

A type of currency swap in which loans in one currency with a fixed-rate are swapped for loans in another other currency with a floating rate. The floating rate in a currency swap is often a floating U.S. LIBOR payment. The "circus" part of the swap stands for Combined Interest Rate and CUrrency Swap. also called cross-currency swap, currency coupon swap.

Commissioner (Appeals) cannot revise u/s 263 an order of IAC u/s 143(3)

Commissioner (Appeals) cannot revise under section 263 an order of IAC under section 143(3), made by him by virtue of jurisdiction conferred upon him under section 125, especially when sub-section (2) of section 125 clarifies that a reference to ITO in Act shall be deemed to be a reference to IAC - [2010] 8 TAXMANN.COM 154 (DELHI)