Question

Loans against Shares/Debentures can be sanctioned against the security of ________.

• A. preference share and convertible debentures
• B. fully paid equity shares and debentures in demat form
• C. all shares and debentures in physical form
• D. only preference share and partly paid debentures

Answer 1

Answer: (B)

fully paid equity shares and debentures in demat form

The loans taken for the purchase of shares and debentures of any company can be sanctioned by any bank against a collateral security of some fully paid equity shares and debentures of some other company in demat form i.e. non materialistic form.