Which debentures are secured by a charge -

Debentures which are convertible on or after

18

months

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Non - convertible debentures which are redeemable on or after

18

months

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Debentures which are non - convertible on or after

18

months

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None of these

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Solution

The correct option is A Non - convertible debentures which are redeemable on or after $18$ months
If debentures are non-convertible, they are paid at the time of redemption. Debentures which are non-convertible and redeemable after a period of more than 18 months must be secured by creating a charge against the property of the company.

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Similar questions

Q21. Consider the following statements:

1. Debentures are long-term financial instruments which acknowledge a debt obligation towards the issuer.

2. The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs).

Which of the following statements are correct?

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