Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

What are the different types of debentures from the view point of registration?

A. Convertible
B. Bearer
C. Redeemable
D. Secured
E. Registered
Choose the correct answer from the options given below:

Options:

A & E only

B & C only

B & E only

C & D only

Correct Answer:

B & E only

Explanation:

From the view Point of Registration:
(a) Registered Debentures: Registered debentures 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. Such debentures can be transferred only by executing a regular transfer deed.
(b) Bearer Debentures: Bearer debentures are the debentures that 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.