Match List-I with List-II
|
List-I |
List-II |
|
(A) Unregistered Debentures |
(I) Perpetual Debentures |
|
(B) Unsecured Debentures |
(II) Naked Debentures |
|
(C) Secured Debentures |
(III) Bearer Debentures |
|
(D) Irredeemable Debentures |
(IV) Mortgage Debentures |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A)-(III), (B)-(II), (C)-(IV), (D)-(I)
| List-I (Debenture Type) | List-II (Synonym/Feature) | Rationale |
| (A) Unregistered Debentures | (III) Bearer Debentures | These are debentures where the company keeps no record of the holder. The person who physically possesses the certificate (the $\mathbf{bearer}$) is considered the owner, and interest is paid to them. |
| (B) Unsecured Debentures | (II) Naked Debentures | These debentures are issued $\mathbf{without}$ any charge or security on the assets of the company. Hence, they are often referred to as "Naked" or Simple Debentures. |
| (C) Secured Debentures | (IV) Mortgage Debentures | These debentures are secured by a charge (either fixed or floating) on the company's assets, similar to a mortgage. |
| (D) Irredeemable Debentures | (I) Perpetual Debentures | These are debentures that are $\mathbf{not}$ repayable during the lifetime of the company, and the principal amount is paid only upon the company's liquidation. They are, therefore, known as "Perpetual." (Note: In many jurisdictions, the issue of truly irredeemable debentures is restricted or prohibited. |