Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
As per SEBI guidelines, how much amount of the debenture must be transferred to debenture redemption reserve before redemption begins?
Options:
5%
10%
15%
25%
Correct Answer:
10%
Explanation:
The adequacy of Debenture Redemption Reserve shall be ten percent of the value of the outstanding debentures.