Practicing Success
According to the Companies Act, 2013, are there any restrictions on the issuance of debentures at a discount? |
Yes, it is prohibited No, there are no restrictions Yes, but only for certain types of companies It is allowed, but only with prior approval from regulatory authorities |
No, there are no restrictions |
Under the Companies Act, 2013 in India, there are no specific restrictions on the issuance of debentures at a discount. Unlike some other financial transactions, such as issuing shares at a discount, the Companies Act, 2013 does not explicitly prohibit or impose conditions on the issuance of debentures at a discount. However, it's essential to note that while there are no statutory restrictions, companies must still adhere to other legal and regulatory requirements and disclose the issuance of debentures at a discount in their financial statements. Additionally, market conditions, investor preferences, and company policies may influence whether a company chooses to issue debentures at a discount or at par value. |