Match List-I with List-II
|
List-I Type of Debenture |
List-II Meaning |
|
(A) Redeemable Debenture |
(I) Payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company. |
|
(B) Perpetual Debenture |
(II) Company does not give any undertaking for the repayment of money borrowed by issuing such debentures. |
|
(C) Specific Coupon Rate Debenture |
(III) Issued with a specified rate of interest, which is called the coupon rate. |
|
(D) Bearer Debenture |
(IV) Can be transferred by way of delivery and the company does not keep any record of the debenture. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
Debentures are grouped by different features: tenure (when they are repaid), coupon rate (the interest they carry) and registration (how they are transferred). Each type in List-I is defined by one of these features.
(A) Redeemable Debenture — this matches (I). It is repaid on the expiry of a fixed period, in one lump sum or in instalments, while the company is alive.
(B) Perpetual Debenture — this matches (II). Also called an irredeemable debenture, it comes with no promise to repay the money on a fixed date; it is paid back only on winding up or after a very long period.
(C) Specific Coupon Rate Debenture — this matches (III). The interest rate is fixed in advance and called the coupon rate.
(D) Bearer Debenture — this matches (IV). Whoever holds it owns it, so it passes by simple delivery and the company keeps no register of holders.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
