Debenture holder generally gets which of the following?

The correct answer is option 1- Interest at fixed rate.

Debenture holders receive interest at a fixed rate.

Debentures are issued to the investors from which funds are raised. They are given debenture receipt as a promise of repayment of capital bearing a fixed rate of interest. Hence debenture holders receive interest on their investment at a fixed rate like 8%, 10%. Debenture holders receive a predetermined interest amount at regular intervals, regardless of the company's performance.

 

OTHER OPTIONS

• Dividend from the company: Dividends are distributed to shareholders, not debenture holders.

• Interest at fluctuating rate depending upon the company's profits: Interest is provided at fixed rate, it does not fluctuate with profits.

• Interest at a rate prescribed by SEBI: While SEBI regulates many aspects of financial markets, it does not prescribe specific interest rates for debentures. The rates are determined by the issuing company.