Which of the following are facts about Debentures?

(A) Specified rate of interest on debentures is also called the specific coupon rate debenture
(B) Convertible debentures can be converted into equity shares
(C) Debenture holders are the owners of a company
(D) Debenture includes debenture inventory and bonds
(E) Irredeemable debentures are also known as perpetual debentures

Choose the correct answer from the options given below:

(A), (B), (D) and (E) only

The correct answer is Option (3) - (A), (B), (D) and (E) only.

(A) Specified rate of interest on debentures is also called the specific coupon rate debenture- This is true.  Specific Coupon Rate Debentures are issued with a predetermined interest rate, known as the coupon rate. This rate can be fixed or floating, with floating rates often tied to the bank rate.

(B) Convertible debentures can be converted into equity shares- This is true.  Convertible debentures can be converted into equity shares or other securities, either at the discretion of the company or the debenture holders. These debentures can be fully or partially convertible.

(C) Debenture holders are the owners of a company- This is false.  Debenture holders are the creditors of the company. Shareholders are the owners of the company.

(D) Debenture includes debenture inventory and bonds- This is true.  As per Section 2(30) of The Companies Act, 2013, the term 'Debenture' encompasses Debenture Inventory, Bonds, and any additional securities issued by a company, regardless of whether they are secured by the company's assets or not.

(E) Irredeemable debentures are also known as perpetual debentures- This is true.  Irredeemable debentures, also known as Perpetual Debentures, are not subject to repayment within a specific timeframe. Instead, they are repaid upon the company's winding-up or after an extended period.