Match List-I with List-II List-I (Type of Debenture) List-II(Explanat…

Match List-I with List-II

List-I (Type of Debenture)	List-II (Explanation)
(A) Secured Debentures	(I) These debentures do not have a specific charge on the assets of the company.
(B) Irredeemable Debentures	(II) 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.
(C) Unsecured Debentures	(III) It refers to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.
(D) Redeemable Debentures	(IV) These debentures are repayable on the winding-up of a company or on the expiry of a long period.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

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

Debentures are grouped by security (secured or unsecured) and by tenure (redeemable or irredeemable).

(A) Secured Debentures — this matches (III) It refers to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default. The holders can recover their money from the charged assets if the company defaults.

(B) Irredeemable Debentures — this matches (IV) These debentures are repayable on the winding-up of a company or on the expiry of a long period. The company gives no undertaking to repay them during its life, which is why they are also called perpetual debentures.

(C) Unsecured Debentures — this matches (I) These debentures do not have a specific charge on the assets of the company. The holders rank as ordinary creditors.

(D) Redeemable Debentures — this matches (II) 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. They are repaid within a fixed period.

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 Security – “… Unsecured Debentures: Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued.”

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 the Point of view of Tenure – “… Irredeemable Debentures: Irredeemable debentures are also known as Perpetual Debentures because the company does not give any undertaking for the repayment of money borrowed by issuing such debentures. These debentures are repayable on the winding-up of a company or on the expiry of a long period.”