The Centre for Risk, Compliance & Governance Studies
Login Register

Knowledge Hub

Glossary

Terms beginning with V: 18 terms

  • Valuation

    Valuation is the process of determining the current worth of a company or asset, often using financial models such as discounted cash flow, comparable company analysis, or precedent transactions. It helps buyers and sellers agree on a fair price during mergers and acquisitions.

    Open the full entry: Valuation

  • Valuation of Foreign Assets

    Valuation rules determine how foreign assets are priced for tax and penalty purposes under the Black Money Act. Assets are valued based on fair market value (FMV) in the local currency and converted to INR using RBI rates. Accurate valuation is essential for correct tax computation and compliance.

    Open the full entry: Valuation of Foreign Assets

  • Value Limit & ASD for Order Spoofing

    Codes flagged for placing and canceling large orders to obscure the books (“spoofing”) may be fined additional surveillance margins?5% added to equity/equity derivatives positions for up to one month?to discourage manipulative layering.

    Open the full entry: Value Limit & ASD for Order Spoofing

  • VaR & Extreme Loss Margin Requirements

    Trading firms must maintain liquid assets to cover Value-at-Risk (VaR) for 99% confidence and Extreme Loss Margins for rare market moves, as well as daily Mark?to?Market (MTM) losses and Base Minimum Capital for non?market risk?ensuring robust capital buffer coverage.

    Open the full entry: VaR & Extreme Loss Margin Requirements

  • Vault Managers Regulations, 2021

    These rules govern licensed entities managing physical commodities, such as gold, within SEBI-regulated vaults. They set registration criteria, operational procedures, audit and compliance measures, and standards for issuing electronic receipts like e-gold. This ensures safe custody, transparent pricing, and secure settlement mechanisms in commodities markets supporting regulatory oversight and investor trust.

    Open the full entry: Vault Managers Regulations, 2021

  • Vendor Management / Processors

    When financial firms share data with external vendors (e.g., payment platforms, auditors), they are responsible for GDPR compliance. Written contracts must bind processors to comparable standards of confidentiality, security, breach handling processes, and data return or deletion.

    Open the full entry: Vendor Management / Processors

  • Venezuela Sanctions

    U.S. and EU sanctions on officials and state-run enterprises.

    Open the full entry: Venezuela Sanctions

  • Vertical Merger

    vertical merger occurs when two companies operating at different stages of the same supply chain combine. For example, a manufacturer merging with a supplier or distributor. This type of merger aims to improve efficiency, reduce costs, secure supply or distribution channels, and enhance control over the production process and quality management.

    Open the full entry: Vertical Merger

  • Vicarious Liability for Companies

    Under S7, companies are strictly liable if anyone “associated” commits bribery to secure a business advantage?regardless of internal policy. The onus is on companies to prove they had “adequate procedures” in place to prevent such conduct.

    Open the full entry: Vicarious Liability for Companies

  • Virtual Asset Service Provider (VASP)

    A VASP supports virtual assets (e.g., cryptocurrencies) through exchange, transfer, custody, or management. Following Wolfsberg guidelines, banks must apply tailored CDD, monitoring, sanctions checks, and risk frameworks to VASPs due to digital asset anonymity and cross-border complexity.

    Open the full entry: Virtual Asset Service Provider (VASP)

  • Virtual Assets

    Virtual assets, also known as crypto assets, are digital representations of value that can be traded, transferred, or used for payment electronically. They do not include digital versions of fiat currency. While virtual assets offer benefits such as faster, cheaper transactions and financial inclusion, they also pose risks due to limited regulation, price volatility, cyber threats, and potential misuse for illicit activities.

    Open the full entry: Virtual Assets

  • Void Contract

    A void contract is an agreement that is not legally enforceable from the beginning because it lacks one or more essential elements required by law. Such contracts have no legal effect, and neither party can enforce the terms or seek remedies under the contract.

    Open the full entry: Void Contract

  • Voidable Contract

    A voidable contract is a valid agreement that one party has the legal right to cancel or enforce. This may occur if one party was under duress, misled, or lacked capacity when entering the contract. Until avoided, the contract remains effective and binding.

    Open the full entry: Voidable Contract

  • Voir Dire

    Voir dire is the jury selection process where attorneys and judges question potential jurors to identify biases or conflicts. Its goal is to ensure a fair and impartial jury by screening out those who may not objectively evaluate the case. Proper voir dire is critical to a just trial.

    Open the full entry: Voir Dire

  • Voluntary Disclosure

    Voluntary disclosure involves a taxpayer reporting foreign assets or income to authorities before detection. Under the 2015 compliance window, such disclosures were encouraged by offering immunity from prosecution in exchange for paying tax and penalty. After the window closed, undisclosed assets became liable for severe penalties and jail.

    Open the full entry: Voluntary Disclosure

  • Voluntary Remediation Credit

    Lower penalties for companies that self-report and cure within a reasonable time.

    Open the full entry: Voluntary Remediation Credit

  • Voluntary Self-Disclosure (VSD)

    Where firms voluntarily report sanctions breaches to regulators, generally reducing fines.

    Open the full entry: Voluntary Self-Disclosure (VSD)