How can investors apply for debentures?

On the basis of the prospectus issued by the company

The correct answer is option 4- On the basis of the prospectus issued by the company.

The procedure for the issue of debentures is the same as that for the issue of shares. The intending investors apply for debentures on the basis of the prospectus issued by the company. The company may either ask for the entire amount to be paid on application or by means of instalments on application, on allotment and on various calls. Debentures can be issued at par, at a premium or at a discount. They can also be issued for consideration other than cash or as a collateral security. The prospectus is a detailed document that provides essential information about the debenture offering, including its terms, conditions, interest rates, maturity dates, and other relevant details. It serves as a formal invitation to potential investors, outlining the terms of the debenture issuance and the procedures for application.