Match List-I with List-IIList-IList-II(A)Debentures transferable by m…

Match List-I with List-II

List-I		List-II
(A)	Debentures transferable by mere delivery	(I)	Zero Coupon Debentures
(B)	Debentures where a charge is created on the assets of the company for the purpose of payment in case of default	(II)	Bearer Debentures
(C)	Debentures which are payable on the expiry of the specific period	(III)	Secured Debentures
(D)	Debentures which do not carry a specific rate of interest	(IV)	Redeemable Debentures

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A) - (II), (B) - (III), (C) - (IV), (D) - (I)

Debentures are classified from several points of view, and each kind is named for the feature given in List-I.

(A) Debentures transferable by mere delivery — this matches (II) Bearer Debentures. The company keeps no record of their holders, so handing them over passes the title, and interest goes to whoever produces the coupon.

(B) Debentures where a charge is created on the assets of the company for the purpose of payment in case of default — this matches (III) Secured Debentures. The charge on assets is the security that protects the holders if the company fails to pay.

(C) Debentures which are payable on the expiry of the specific period — this matches (IV) Redeemable Debentures. They are repaid on the date fixed at the time of issue, in a lump sum or in instalments.

(D) Debentures which do not carry a specific rate of interest — this matches (I) Zero Coupon Debentures. They are issued at a deep discount, and the gap between issue price and face value is the holder’s return.

NCERT (2026-27 edition):
From the view Point of Registration – “… 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 on debentures is paid to a person who produces the interest coupon attached to such debentures.”

NCERT (2026-27 edition):
From the Point of view of Security – “(a) Secured Debentures: Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.”

NCERT (2026-27 edition):
From the Point of view of Tenure – “Redeemable Debentures: Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in Instalments during the life time of the company.”

NCERT (2026-27 edition):
From Coupon Rate Point of view – “… Zero Coupon Rate Debentures: These debentures do not carry a specific rate of interest. In order to compensate the investors, such debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.”