Question

Interest is paid to the person who produces the interest coupon attached to debenture in case of -

• A. Bearer Debentures
• B. Registered Debentures
• C. All types of Debentures
• D. None of these

Answer 1

The correct option is A Bearer Debentures

Option A is correct.

The debentures which are payable to bearer and whose names do not appear in the register of debenture holders are known as “Bearer Debentures”. Coupons for interest are attached to the document and interest is paid to the holders as it falls due. Bearer Debentures are transferable by mere delivery.