Match List-I with List-II. List-1 List-II (A) Secured Debentures (I)…

Match List-I with List-II.

List-1	List-II
(A) Secured Debentures	(I) Which are payable on the expiry of the specific period either in lump sum or in Instalments during the life time of the company.
(B) Unsecured Debentures	(II) Debentures where a charge is created on the assets of the company for the purpose of payment in case of default.
(C) Redeemable Debentures	(III) These debentures are repayable on the winding-up of a company or on the expiry of a long period.
(D) Irredeemable Debentures	(IV) Debentures do not have a specific charge on the assets of the company.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

Debentures are classified by security (secured or unsecured) and by tenure (redeemable or irredeemable).

(A) Secured Debentures — this matches (II) Debentures where a charge is created on the assets of the company for the purpose of payment in case of default. The holders can recover their money from the charged assets.

(B) Unsecured Debentures — this matches (IV) Debentures do not have a specific charge on the assets of the company. They carry no specific security.

(C) Redeemable Debentures — this matches (I) Which are payable on the expiry of the specific period either in lump sum or in Instalments during the life time of the company. They are repaid at a fixed time.

(D) Irredeemable Debentures — this matches (III) These debentures are repayable on the winding-up of a company or on the expiry of a long period. They are also called perpetual debentures.

NCERT (2026-27 edition):
Types of Debentures – “(a) Secured Debentures: Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.”

NCERT (2026-27 edition):
Types of Debentures – “… Unsecured Debentures: Unsecured debentures do not have a specific charge on the assets of the company.”

NCERT (2026-27 edition):
From the Point of view of Tenure – “Redeemable Debentures: Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in Instalments during the life time of the company.”

NCERT (2026-27 edition):
From the Point of view of Tenure – “… Irredeemable Debentures: Irredeemable debentures are also known as Perpetual Debentures because the company does not give any undertaking for the repayment of money borrowed by issuing such debentures. These debentures are repayable on the winding-up of a company or on the expiry of a long period.”