Match List I with List II
| List I | List II |
| A. Redemption in lumpsum | I. Company purchases own debentures for cancellation |
| B. Redemption in installments | II. Company gives offer to convert to shares or new class of debentures |
| C. Redemption by purchase in open market | III. Company draws number of lots out of debentures outstanding |
| D. Redemption by conversion | IV. Company pays entire amount to debenture holders |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-IV, B-III, C-I, D-II
Each method of redemption is named after the way the company pays the debentureholders.
(A) Redemption in lumpsum — this matches (IV) Company pays entire amount to debenture holders. The whole amount is paid at maturity.
(B) Redemption in installments — this matches (III) Company draws number of lots out of debentures outstanding. The debentures redeemed each time are picked by draw of lots.
(C) Redemption by purchase in open market — this matches (I) Company purchases own debentures for cancellation. The company buys its debentures from the market and cancels them.
(D) Redemption by conversion — this matches (II) Company gives offer to convert to shares or new class of debentures. Debentureholders who accept get shares or new debentures in place of cash.
NCERT (2026-27 edition):
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