Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

.......................... are those debentures in respect of which all details including names, addresses and particulars of holding of the debenture holders are entered in a register kept by the company.

Options:

Registered debentures

Bearer Debentures

Fully convertible debenture

Partly convertible debenture

Correct Answer:

Registered debentures

Explanation:

The correct answer is option 1- Registered debentures.

Registered debentures are those debentures in respect of which all details including names, addresses and particulars of holding of the debentureholders are entered in a register kept by the company. Such debentures can be transferred only by executing a regular transfer deed.

 

OTHER OPTIONS

  • Bearer Debentures: Bearer debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures Interest on debentures is paid to a person who produces the interest coupon attached to such debentures.
  • Convertible Debentures: 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.