Debenture Redemption Reserve is not to be set aside in which of the following cases?
Answer & explanation
Correct answer: option 2
It may be noted that no Debenture Redemption Reserve is required in case of convertible debentures because no funds are required for redemption. In case of partly convertible debentures, Debenture Redemption Reserve shall be created in respect of non-convertible portion of debenture issue.