What are the types of debenture?
The major types of debentures are:
- Registered Debentures: Registered debentures are registered with the company.
- Bearer Debentures:
- Secured Debentures:
- Unsecured Debentures:
- Redeemable Debentures:
- Non-redeemable Debentures:
- Convertible Debentures:
- Non-convertible Debentures:
What is a debenture in corporate law?
Debentures are debt instruments used by an issuer to raise funds from investors in return for the payment of interest and are principally regulated under Chapter 2L of the Corporations Act 2001 (Corporations Act).
What are the various types of debentures under company Act 2013 explain?
The definition of debentures under Companies Act, 2013 says companies cannot issue debentures carrying voting rights. Hence, companies are free to issue many other types of debentures. We can classify types of debentures in the following five categories: security, convertibility, permeance, negotiability, and priority.
What is called debenture?
A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.
Who is debenture holder in one sentence?
Debenture holders are the creditors of the company.
What is the income of debenture holder?
The debenture holder earns income in the form of a fixed rate of interest.
What are the different classes of debentures?
Types of Debentures Secured Debentures: These are debentures that are secured against an asset/ assets of the company. Unsecured Debentures: These are not secured by any charge against the assets of the company, neither fixed nor floating. Redeemable Debentures: These debentures are payable at the expiry of their term.
What is the difference between debentures and a bank loan?
Debentures are capital raised by a company by accepting loans from general public.
What is the difference between shares, bonds, and debentures?
Shares or stock refer to owning a stake in a company or a fund. Bonds refer to a way of making a loan to a company or government agency. A debenture is a type of bond that’s not secured by any asset. If a company goes bankrupt, different security holders will be paid with different priority.
What are zero-coupon debentures or bonds?
A zero-coupon convertible is a convertible bond issued by a corporation that pays no regular interest to bondholders. Because of the zero-coupon feature, these convertibles are sold at a discount