CUET Preparation Today
Debenture Redemption Reserve is created by: A. Service Sector Company Choose the correct answer from the options given below: |
A, C and E only A, B and D only A, B and E only B, C and D only |
A, B and D only |
The correct answer is Option (2) → A, B and D only. As per the Act, all India financial institutions registered by Reserve Bank of India, banking companies, NFBCs registered with Reserve bank of India, Housing Finance companies registered to the National Housing bank and the companies listed on stock exchange are exempted from creating Debenture Redemption Reserve and may redeem debentures out of capital. Whereas for "other unlisted companies", the adequacy of Debenture Redemption Reserve shall be ten percent of the value of the outstanding debentures. |
