Match List I with List IILIST ILIST IIA.Bearer DebenturesI.No Specifi…

Match List I with List II

LIST I		LIST II
A.	Bearer Debentures	I.	No Specific interest rate
B.	Zero coupon rate Debentures	II.	No redemption till winding up of company
C.	Perpetual Debentures	III.	No specific charge on assets of company
D.	Unsecured Debentures	IV.	Interest is paid to person who produces interest coupon

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → A-IV, B-I, C-II, D-III

Each type of debenture is named after the feature that sets it apart.

(A) Bearer Debentures — this matches (IV) Interest is paid to person who produces interest coupon. They pass by delivery, so the company keeps no record and pays interest to whoever presents the coupon.

(B) Zero coupon rate Debentures — this matches (I) No Specific interest rate. They are issued at a deep discount and the discount works as the interest.

(C) Perpetual Debentures — this matches (II) No redemption till winding up of company. They are irredeemable; the money is repaid on winding up or after a very long period.

(D) Unsecured Debentures — this matches (III) No specific charge on assets of company. They are not backed by any particular asset.

NCERT (2026-27 edition):
From the view Point of Registration – “… Bearer Debentures: Bearer debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures Interest on debentures is paid to a person who produces the interest coupon attached to such debentures.”

NCERT (2026-27 edition):
From Coupon Rate Point of view – “… Zero Coupon Rate Debentures: These debentures do not carry a specific rate of interest. In order to compensate the investors, such debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.”

NCERT (2026-27 edition):
From the Point of view of Tenure – “… Irredeemable Debentures: Irredeemable debentures are also known as Perpetual Debentures because the company does not give any undertaking for the repayment of money borrowed by issuing such debentures. These debentures are repayable on the winding-up of a company or on the expiry of a long period.”

NCERT (2026-27 edition):
From the Point of view of Security – “… Unsecured Debentures: Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued.”