CUET Preparation Today
| As per SEBI guidelines, how much amount of the debenture must be transferred to debenture redemption reserve before redemption begins in case of conversion of debentures into shares? |
10% 25% 5% Zero |
| Zero |
| A company can redeem its debentures by converting them into shares or new class of debentures. If debentureholders find that the offer is beneficial to them, they can exercise their right of converting their debentures into shares or new class of debentures. No amount is required to transfer in DRR because there will be conversion of debentures into shares. |
