Accountancy Part AIssue and Redemption of Debentures

Debentures which are transferable by mere delivery are:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Bearer debentures

The company keeps no register of the holders of bearer debentures, so they pass from one person to another by mere delivery. Registered debentures, by contrast, can be transferred only by a regular transfer deed.

NCERT (2026-27 edition):
Test your Understanding – II

Extract from the NCERT textbook

NCERT (2026-27 edition):
Types of Debentures – “… 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.”