A three level ladder system is analyzed and the coherence of initially electric-dipole forbidden transition is calculated. Due to the presence of two laser fields the initially dipole forbidden transition becomes dynamically permitted due to ac Stark effect. It is shown that such transitions exhibit quantum-interference-related phenomena, such as electromagnetically induced transparency, gain without inversion and enhanced refractive index. Gain and dispersion characteristics of such transitions strongly depend upon the relative phase between the driving and the probe fields. Unlike allowed transitions, gain/absorption behavior of ac-Stark allowed transitions exhibit antisymmetric feature on the Rabi sidebands. It is found that absorption/gain spectra possess extremely narrow sub-natural resonances on these ac Stark allowed forbidden transitions. An interesting finding is simultaneous existence of gain and negative dispersion at Autler-Townes transition which may lead to both reduction of the group velocity and amplification of light.