Which type of debentures can be transferred by way of delivery?

Bearer Debentures

The correct answer is option 2- 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 payments on bearer debentures are made to whoever presents the attached interest coupon. 

OTHER OPTIONS

• Specific Coupon Rate Debentures: These debentures are issued with a predetermined interest rate, known as the coupon rate. This rate can be fixed or floating, with floating rates often tied to the bank rate.
• Registered Debentures: Registered debentures have detailed information about debenture holders, including their names, addresses, and holdings, recorded in a company-maintained register. These debentures can only be transferred through a formal transfer deed.
• Convertible Debentures: Convertible debentures can be converted into equity shares or other securities, either at the discretion of the company or the debenture holders. These debentures can be fully or partially convertible.