'The procedure for the issue of debentures is the same as that for the issue of.............'
Answer & explanation
Correct answer: option 1
The procedure for the issue of debentures is the same as that for the issue of
shares. The intending investors apply for debentures on the basis of the prospectus
issued by the company. The company may either ask for the entire amount to be
paid on application or by means of instalments on application, on allotment and
on various calls.