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IPO Initial Public Offering

It is the process by which a private company can go public by sale of its

stocks to general public. Any old or new company can raise the equity capital

by issuing IPOs. Any company issuing IPOs is known as Issuer.

Equity

The value of ownership of a business or property after all the amounts,

liabilities or debts have been paid.

Stocks

They represent ownership in a business.

SEZ

A Special Economic Zone (SEZ) is a geographical region that has economic

laws that are more liberal than a country's domestic economic laws. India has

specific laws for its SEZs. 491 SEZs have been formally approved by SEZ Act,

2005.

The objectives of SEZs can be explained as:

1.Generation of additional economic activity;

2.Promotion of exports of goods and services;

3.Promotion of investment from domestic and foreign sources;

4.Creation of employment opportunities;

5.Development of infrastructure facilities.

The incentives and facilities available to SEZ developers include:

1.Exemption from customs/excise duties for development of SEZs for

authorized operations approved by the BOA.

2.Income Tax exemption on income derived from the business of development

of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the

Income Tax Act.3.Exemption from minimum alternate tax under Section 115 JB of the

Income Tax Act.

4.Exemption from dividend distribution tax under Section 115O of the

Income Tax Act.

5.Exemption from Central Sales Tax (CST).

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