Match List – I with List – II.

Choose the correct answer from the options given below :

A-III, B-IV, C-II, D-I

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

* Secured debenture- Charge is created on the assets of the company. 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. The charge may be fixed or floating. A fixed charge is created on a specific asset whereas a floating charge is on the general assets of the company. The fixed charge is created against those assets that are held by a company for use in operations not meant for sale whereas the floating charge involves all assets excluding those assigned to the secured creditors.

* Registered debenture- Details of debenture holders are entered in the register. Registered debentures are those debentures in respect of which all details including names, addresses and particulars of holding of the debenture holders are entered in a register kept by the company. Such debentures can be transferred only by executing a regular transfer deed.  

* Convertible debenture- Convertible into equity share. 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. 

* Zero coupon debenture- Do not carry a specific rate of interest. Zero Coupon Rate 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.