| LIST 1 |
LIST 2 |
(A) Debentures that do not have specific
charge on assets of the company |
(III) Unsecured Debentures |
| (B) Perpetual Debentures |
(I) Irredeemable Debentures |
| (C) Debentures transferred by way of Delivery |
(IV) Bearer Debentures |
(D) Debentures that cannot be
converted into equity shares |
(II) Non-convertible Debentures |
There are different types of debentures on various basis.
* Security: Debentures can be either secured or unsecured. Secured debentures are backed by specific assets of the company, providing a degree of security to the debenture holders. Unsecured debentures, on the other hand, are not backed by any collateral.
* Redeemability: Debentures may be redeemable or irredeemable (perpetual). Redeemable debentures are repayable to the debenture holders on the specified maturity date. Irredeemable debentures, also known as perpetual debentures, are not repayable within a specific timeframe and are typically repaid only upon the company's winding-up.
* Transferability: Debentures can be either registered or bearer. Registered debentures have the holder's details recorded with the company and can only be transferred through a formal process. Bearer debentures, on the other hand, can be transferred simply by delivery.
* Convertibility: Debentures can be either convertible debentures and non convertible debentures. Some debentures are convertible, which means they can be converted into equity shares of the issuing company at a predetermined ratio and at a specified time. |
