Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

What type of record does the company keep for registered debentures?

Options:

Names and addresses of debentureholders

Interest coupon information

Board of directors' notifications

Transfer deeds

Correct Answer:

Names and addresses of debentureholders

Explanation:

For registered debentures, the company keeps a record that includes the names and addresses of the debentureholders. This register serves as an official record of who owns these debentures and their contact information. Having accurate contact information (addresses) is essential for the company to communicate with debentureholders, especially when it comes to matters such as interest payments, redemption, or other corporate actions. When registered debentures are transferred from one owner to another, this register is updated to reflect the change in ownership.