What are Redeemable debentures?

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Redeemable debentures are those securities which are to be repaid within a stipulated period / maturity period. For instance, X co issued 9% 7 years $ 1000 Debentures. This issue of debentures has coupon rate of 9% per year and redeemable period of 7 years. The amount raised by issuing thses debentures are to be repaid within 7 years from now.
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What are shares and debentures?

A debenture is an unsecured loan you offer to a company. The company does not give any collateral for the debenture, but pays a higher rate of interest to its creditors. In case of bankruptcy or financial difficulties, the debenture holders are paid later than bondholders. Debentures are different f (MORE)

How do you buy the debenture?

Answer . i think debenture could be bought in an environment where debt securities are traded from private companies usually more than a year and with a fixed interest rate.

Difference between bonds and debentures?

A debunture is an unsecured loan certificate issued by a company,backed by general credit rather than by specified assets. A bond isa debt investment in which an investor loans money to an entitythat borrows the funds at a fixed interest rate.

What are the types of debentures?

What is a Debenture? A Debenture is a debt security issued by a company (called the Issuer), which offers to pay interest in lieu of the money borrowed for a certain period. In essence it represents a loan taken by the issuer who pays an agreed rate of interest during the lifetime of the instrumen (MORE)

What are the differences between share and debenture?

SHARES- 1.share holder is the real owner of the company.share holder have not fixed dividend rate.share holder have not maturity period.share are not redeemed.shares are more volatile.share holder have high risk.share holder have high return.share holder have right on residial income. DEBENTURE-1. (MORE)

What did redeemers do?

Redeemers were the members of the powerful conservative southernoligarchy. The redeemers had limited the rights of African Americanby passing laws that discriminated against them.

What is a debenture stock trust deed?

It is a formal legal document/contract that outlines the terms of the debenture issue between issuer and holders. States concerns to maturity date, interest rate, interest payment , protective provisions and any other terms & conditions between issuer & holders....

What is a debenture?

Debentures function more or less like bonds. One can also term debentures as a variant of bonds. Debentures are issued by a company which offers to pay interest in lieu of the money borrowed for a pre-specified period. In essence, it represents a loan taken by the issuer who pays an agreed rate of i (MORE)

What are debenture bonds?

A debenture is a debt security, like a bond is, but unlike a bond a debenture is unsecured.\n. \nHowever, the two terms are basically interchangeable--a lot of people call bonds debentures and debentures bonds.

Define redemption of debentures out of capital?

When debentures are redeemed out of capital, no transfer is made to general reserve or debenture redemption reserve account. In this method it is assumed that the company has sufficient funds to redeem the debentures. So the profits are not utilised to replace the debentures.It affects adversely to (MORE)

What is Debenture Redemption Reserve?

Debenture is a debt instrument to raise funds. It has a maturity period associated with it. At the end of the maturity, the company(borrower) should return the interest and principal amount. Debenture Redemption Reserve is an amount kept as reserve for paying the debenture holder at the end of the (MORE)

What is single debenture?

If for example a company obtains a secured loan or overdraft facility from its bank, the latter is likely to insist that the company seals the banks standard form of debenture creating the charge and giving the bank various safeguards and powers

What is the difference between a debenture and a bond?

Long-term debt securities issued by the Government or any of the State Government's or undertakings owned by them or by development financial institutions are called as bonds. Instruments issued by other entities are called debentures. The difference between the two is actually a function of where t (MORE)

What is meant by non convertible debentures?

A debenture is basically an unsecured loan to a corporation. Often there is a provision to exchange this debt for corporate stock. Non-convertible debentures do not have this provision. Non Convertible Debentures are relatively safer than stocks. In case the company winds up, claims of NCD holders (MORE)

What is the difference between debentures and shares?

debentures are a form of unsecured debt that is in the form of a bond. This type of debt is normally used by corporations for funding. A share is just a percentage of a company that you own through purchasing a share of stock of a company.

What is redeem?

The word redeem is a verb (redeem, redeems, redeeming, redeemed): . to recover ownership by paying amount due. . to pay off such as a promissory note. . to convert to cash. . to turn in to receive something in return. . to set free, to rescue, to ransom. . to save from sinfulness and its con (MORE)

Types of shares and debenture?

Capital refers to the amount invested in the company so that it can carry on its activities. In a company capital refers to "share capital". The capital clause in Memorandum of Association must state the amount of capital with which company is registered giving details of number of shares and the ty (MORE)

What are registered debentures?

Certain debentures are made out in the names of the particular persons whose names appear in the register of debenture holders. Such debentures which appear in this register are known as "Registered Debentures". They are transferable in the same way as shares. Interest as well as the debenture amoun (MORE)

What does debenture mean?

A debenture is an unsecured bond that's issued either by agovernmental or civil corporation and backed only by the creditstanding or integrity of the issuer, not collateral. It isdocumented by an indenture, which is an agreement.

What is zero interest debenture?

Issue of the zero interest debenture does not carry any explicit rate of interest.The difference between th face value and the purchase price is the return to the investor(lender).

What are the characteristics of debentures?

Characteristics of a debenture: 1. It is an instrument in writing. An oral promise in acknowledgement of a debt is not a debenture. 2. It is an acknowledgement of the indebtedness of the company to its holder for the amount stated in it. 3. It is usually under the seal of the company but it is not (MORE)

What are the features of debentures?

debenture holders are not the owner of the company.they are considered as the creditors of the corporation or in other words the company borrow money from them through issuing debentures.moreover, they has no voting rights in the company's general meeting.

Types of debentures in company law?

What is a Debenture? A Debenture is a debt security issued by a company (called the Issuer), which offers to pay interest in lieu of the money borrowed for a certain period. In essence it represents a loan taken by the issuer who pays an agreed rate of interest during the lifetime of the instrument (MORE)

What are the merit and demerit of debenture?

Hi merit of dbenture - trading on equity is possible as debenture holders get a lower rate of return than the earnings of the company. demerit of debenture-cost of raising capital through debentures is high of high stamps duty.

Can a Company Buy back its Debentures?

Typically no, unless this is agreed upon between the debt holder and the issuing institution. The exception to this is callable debt, which allows the issuing corporation to pay off the debt within a certain window, specified by the terms of the issuance.

Debenture holder treated as member or not?

No,debenture holders are not treated as members. Debentures are mere debts and debenture holders are just creditors.They give their money to the company at a fixed interest rate.Debenture holders being creditors get guaranteed interest, as agreed, whether the company makes profit or not. Also d (MORE)

What is the difference between a bond and debenture?

Bonds are a lot more reliable than a debenture because it hasinterest rates that are low and there is collateral for the loan.And also if bankruptcy occurs, debenture holders are reimbursedlong after than bondholders.

How do you calculate interest on debentures loan?

The Debenture loan is an unsecured debt backed by the credit worthiness of the borrower. The interest is calculated based on the 10-year Treasury rate plus a market-driven spread, which is currently about 65-75 basis points.

What is redemption of debentures using purchase of own debenture?

A company can buy its own debenture in the open market, if it is authorised by its AOA. the debentures so purchased can be used either for immediate cancellation or redemption of debenture or for investment. the debenture so purchase for investment can be subsequently either be issued to fullfill ad (MORE)

How would you define debenture bonds?

Corporations with sound credit standing are able to issue bonds without pledging assets. Such bonds are called debenture bonds, or unsecured bonds.

Examine Debenture can be redeemed only out of capital?

No Debentures can not be redeemed out of capital only. Gov of India and SEBI has indirectly placed restrictions on redemption of debentures. Now it is compulsory to create Debenture Redemption Reserve at-least 50% of the debentures issued.

Is debenture holder owner of company?

No, A debenture bond owner is just like any other bond owner. A debenture bond is an uninsured bond. The owner of a bond is just lending their money to a company for a long-term period. A bond is an example of a long-term debt. An owner of a company would be an example of an equity such as a s (MORE)

What is the meaning of Debenture?

In the US, a debenture is a certificate acknowledging an unsecured debt (i.e. one without collateral). It is sometimes synonymous with corporate bonds or notes, as a debenture does not afford participation as a stockholder. The underlying meaning is the ability of a customer to obtain goods or se (MORE)

How do you get redeem?

A redeem code is a unique number which will give you a addon, Live, points and more. When you have this code, just simply press your middle X button on your controller, go all the way to the left and select redeem code.

What is the definition of debenture holders?

In law, a debenture is a document that either creates a debt or acknowledges it. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond , loan stock or note . A debe (MORE)

Why debentures are not forfeited?

debenture is a loan to company and its face value will be higher moreover it carries fixed interest which is charge against profits.so there is no chance from the side of debenture holder for non payment of calls after repeated notices from the company. from the view point of company it cannot forfi (MORE)

When to create a Debenture Redemption Reserve?

Most companies retire debentures by issuing another set ofdebentures, hence, most companies don't park funds for retiringdebentures by creating any fund. The bond market will surely getaffected negatively by such a move of the ministry of corporateaffairs. Section 117C of the Companies Act, 1956, re (MORE)

Is debentures in balance sheet?

Yes,debenture in the balance sheet because debentures is liability for the company so it comes debit side in balance sheet in the books of the company.

If someone holds a debenture what can they do with it?

With a debenture, a company can hold a debt with another. A debenture is a loan agreement where there is no collateral or assets involved. It is based on the promise and credit history of the company that it will be paid back.

Can debentures be encashed?

Debentures can be encashed. However, if this is done prior to maturity but after one year, the owner will be required to pay capital gains tax on the return.