Match List-I with List-II List-I List-II (A) These debentures refer t…

Match List-I with List-II

List-I	List-II
(A) These 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.	(I) Bearer Debentures
(B) These debentures are those which are payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company.	(II) Zero Coupon Rate Debentures
(C) These debentures do not carry a specific rate of interest.	(III) Redeemable Debentures
(D) These 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 the debentures that is paid to a person who produces the interest coupon attached to such debentures.	(IV) Secured Debentures

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

Debentures are classified by security, tenure, coupon rate and registration, and each description here belongs to one of these classes.

(A) These 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. — this matches (IV) Secured Debentures. The charge on assets, fixed or floating, is what makes them secured.

(B) These debentures are those which are payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company. — this matches (III) Redeemable Debentures. A fixed repayment period marks them out from irredeemable debentures.

(C) These debentures do not carry a specific rate of interest. — this matches (II) Zero Coupon Rate Debentures. They are issued at a deep discount, and the difference between face value and issue price takes the place of interest.

(D) These 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 the debentures that is paid to a person who produces the interest coupon attached to such debentures. — this matches (I) Bearer Debentures. They pass by mere delivery, and interest goes to whoever presents the coupon.

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.”

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.”