Question

The term debentures is defined in section ________ of the companies act 2013.

• A. 2(7)
• B. 2(30)
• C. 2(18)
• D. 2(10)

Answer 1

Answer: (B)

2(30)

Debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. As per section 2(30) of companies act, 2013 "debenture" includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not.