Question

what is the difference between Debenture and debenture certificate

Answer 1

Dear student The word Debenture is derived from a Latin word ‘debere’ which means to borrow. A debenture is issued in the form of a certificate under the seal of a company and containing a contract for the repayment of the principal sum after a fixed period of time and payment of interest at regular intervals, generally half yearly. Debentures are issued by a company for acquiring long-term borrowings. Debenture certificates is a certificate of debt, with the date of redemption and amount of repayment mentioned on it. Regards