Glossary List N

NAV:

NAV is the per share value of a mutual fund or any exchange traded fund. Net Asset Value is the value of assets of an entity minus the value of the entity’s liabilities.

NCDEX:

National Commodity & Derivatives Exchange Limited (NCDEX) is commodity exchange in India that operates online. This is an exchange platform that enables traders to trade in commodity derivatives. NCDEX is a public limited company and was incorporated on 23rd of April in 2003 under the Companies Act of 1956.

NEFT:

NEFT, which stands for National Electronic Funds Transfer is the system of money transfer used in India to transfer funds from one bank to another. The banks and the branches which support NEFT transactions need to be a part of NEFT network.

Net interest income:

Net interest income or NII is the difference of the income earned by a bank through interest from its lending activities and the interest paid by the same to the depositors. Net interest income = Interest earned - Interest paid

Netting:

Netting is a general concept used in financial markets that is used to offset the value of a number of positions or the payments that are due to get exchanged between two parties or more. This helps to determine as to which party has owned remuneration in the multiparty agreement.

Net worth:

Net worth of an entity is the amount by which the company’s assets exceed the liabilities. This is an indication of good financial health.

New business profit:

This is a concept used to measure the profitability of a company and can be calculated by present value of the future profits that are expected by the company for a said period of time.

New fund offer (NFO):

NFO or New fund offer is the offering where investors get to purchase units from a closed end mutual fund. This offer occurs during the launch of a mutual fund and helps the firm to raise capital for securities purchase.

Niche marketing:

Niche marketing is business promotion and selling of a product or a service is dedicated to a specialized market segment.

NOC:

NOC or Network operation center is also known as network management center and refers to management of network over a computer, satellite network or telecommunication from one or more locations.

Nominee:

A nominee can be a person or a firm whose name the securities or any other properties get transferred to facilitate transactions, while leaving customer who happens to be the actual owner.

Non banking financial corporation (INBFC):

A Non Banking Financial Company is a company that is registered under the Companies Act of 1956 of India and is engaged in services of loans and advances, stocks, hire and purchase of bonds, shares acquisition but does not include any kind of entity that does not have its principal businesses like agriculture etc.

Non convertible debentures:

The debentures which cannot be converted back into shares or equities are known as non convertible debentures.

Non-performing assets:

Non-performing assets are the loans that are in default or in arrears on the payments scheduled. In many cases, any debt is referred to as nonperforming when the payments on the loan have not been paid for more than 90 days.

Non Standard life:

Non standard life refers to an individual who purchases the policy sold by an insurance company by paying an extra premium than the normal interest rate. This is one kind of a sub standard life insurance.

Non Tax revenue:

Non Tax Revenues are the revenue receipts that are not generated by public taxation. This revenue is generated from the dividends and profits earned by the government from its PSUs.

Nostro account:

A Nostro account is an account that a bank has in foreign currency in a different bank. Nostors is the term that is derived from Latin word which means “ours” and such accounts are used to facilitate foreign exchange and foreign trade transactions.

Novation:

Novation as per business and contract law is an act of replacing one obligation to perform with other obligation. This also refers to adding an obligation to perform or replacing one party to get into an agreement with another.

NRI:

NRI refers to Non-Resident Indian who happens to be the citizen of India and holds an Indian passport but has immigrated temporarily to a different country for more than six months for employment or education or for other purposes.

NSDL:

NSDL is National Securities Depository Limited is the Indian central securities depository which is based in Mumbai.

NSE:

NSE, the National Stock Exchange of India Limited was established in year 1992 is the largest financial market in India. NSE conducts the transactions in equity, wholesale debt and the derivative markets.