Match List I with List II

Choose the correct answer from the options given below :

A-IV, B-III, C-I, D-II

The correct answer is option 2- A-IV, B-III, C-I, D-II.

* Redemption in lumpsum- The company pays an entire amount to debenture holders. In this method, the company redeems all the debentures at once by paying the entire principal amount along with any accrued interest to the debenture holders. This usually happens at the maturity date of the debentures.

* Redemption in installments- The company draws number of lots out of debentures outstanding. In this method, the company redeems the debentures in multiple installments over a period of time. The company may specify certain lots or portions of the total debentures outstanding to be redeemed at each installment date until all the debentures are fully redeemed.

* Redemption by purchase in open market- The Company purchases own debentures for cancellation. The company can buy back its own debentures from the open market if they are available for purchase. When a company purchases its own debentures in the open market for the purpose of immediate cancellation, the purchase and cancellation of such debentures are termed as redemption by purchase in the open market.

* Redemption by conversion- The company gives an offer to convert to shares or new class of debentures. In this method, the company offers debenture holders the option to convert their debentures into shares or a new class of debentures at a predetermined conversion ratio. Debenture holders may choose to convert their debentures into equity shares or other securities offered by the company