Match List I with List II. List 1 List 2 (A) Payable on the expiry of…

Match List I with List II.

List 1	List 2
(A) Payable on the expiry of the specific period	(I) Unsecured Debentures
(B) Do not carry a specific rate of interest	(II) Redeemable Debentures
(C) Do not have a specific charge on the assets	(III) Bearer Debentures
(D) Transferred by way of delivery and the company does not keep any record	(IV) Zero coupon rate Debentures

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

Debentures are classified by tenure, coupon rate, security and registration.

(A) Payable on the expiry of the specific period — this matches (II) Redeemable Debentures. They are repaid at the end of a fixed period.
(B) Do not carry a specific rate of interest — this matches (IV) Zero coupon rate Debentures. They are issued at a deep discount instead.
(C) Do not have a specific charge on the assets — this matches (I) Unsecured Debentures. No asset is pledged for them.
(D) Transferred by way of delivery and the company does not keep any record — this matches (III) Bearer Debentures. Interest is paid to whoever holds them.

NCERT (2026-27 edition):
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. Debentures can be redeemed either at par or at premium.”

NCERT (2026-27 edition):
Zero Coupon Rate Debentures – “… These debentures do not carry a specific rate of interest. In order to compensate the investors, such debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.”

NCERT (2026-27 edition):
Unsecured Debentures – “… Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default.”

NCERT (2026-27 edition):
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.”