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What is the maximum percentage at rge time of issue of debentures?
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What Advantages does issue of debentures over equity shares?
Cost is the major advantage. Debentures are to be serviced for the contracted period of time, while equity servicing is perennial.
Why debentures are considered very secure?
Debentures are credit instruments. Companies have to pay fixed interest to the debentures holders even though the company is running on loss. An the time of liquidation also the company have to repay the amount to debenture holders before paying it to share holders.
What is the maximum time for a Fixed Deposit?
maximum time is 10 year
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 and repays the principal normally, unless otherwise agreed, on maturity.These are long-term debt instruments issued by private sector companies. These are issued in denominations as low as Rs 1000 and have maturities ranging between one and ten years. Long maturity debentures are rarely issued, as investors are not comfortable with such maturitiesDebentures enable investors to reap the dual benefits of adequate security and good returns. Unlike other fixed income instruments such as Fixed Deposits, Bank Deposits they can be transferred from one party to another by using transfer from. Debentures are normally issued in physical form. However, corporates/PSUs have started issuing debentures in Demat form. Generally, debentures are less liquid as compared to PSU bonds and their liquidity is inversely proportional to the residual maturity. Debentures can be secured or unsecured.What are the different types of debentures?Debentures are divided into different categories on the basis of: (1)convertibility of the instrument (2) SecurityDebentures can be classified on the basis of convertibility into:· Non Convertible Debentures (NCD): These instruments retain the debt character and can not be converted in to equity shares· Partly Convertible Debentures (PCD): A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.· Fully convertible Debentures (FCD): These are fully convertible into Equity shares at the issuer's notice. The ratio of conversion is decided by the issuer. Upon conversion the investors enjoy the same status as ordinary shareholders of the company.· Optionally Convertible Debentures (OCD): The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue.On basis of Security, debentures are classified into:· Secured Debentures: These instruments are secured by a charge on the fixed assets of the issuer company. So if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors· Unsecured Debentures: These instrument are unsecured in the sense that if the issuer defaults on payment of the interest or principal amount, the investor has to be along with other unsecured creditors of the company.
What is the percentage rate for first time homeowner loans?
The percentage rate for first time home owner loans is average. The percentage rate is average because first time home owner loans are for people who have never owned a home.
What Advantages does issue of debentures over equity shares?
Cost is the major advantage. Debentures are to be serviced for the contracted period of time, while equity servicing is perennial.
Why maturing debenture may cause problems for the company?
Ideally speaking it is not a problem for the company. All they have to do is, to pay back the investors who bought the Debentures at the time of issue. It can be a problem if the company does not have enough finances to pay off the investors whose Debentures are maturing.
What does OFCD stand for?
OFCD - optionally fully convertible debentures. these are the debentures that can be converted into equity at any time at the rate of interest decided by the company
Why debenture redemption reserve is transfer to general reserve?
When debentures are redeemed payment is made from a reserve which is created at the time of purchase of such debentures,therefore at the time of payment first it is transferred to general reserve then as it is expenditure to company.
Why debentures are considered very secure?
Debentures are credit instruments. Companies have to pay fixed interest to the debentures holders even though the company is running on loss. An the time of liquidation also the company have to repay the amount to debenture holders before paying it to share holders.
What is the meaning of electrical After Diversity Maximum Demand?
The maximum demand with regards to diversity is when an electrical device is running at its maximum capability. The diversity number is typically a percentage, so if a device is running at 80 percent diversity, it is running on maximum demand 80 percent of the time.
Maximum garnishment for alimony in Illinois?
what is the maximum percentage or $ for garnishment of wages for alimony in illinois. I have fully completed child support and am continuing to pay for their colleges. I am trying to get alimony lowered but having a difficult time.
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 necessary. A certificate signed by two directors of a company and without bearing the company's seal is a valid debenture.4. It is one of a series of like debentures. But a single debenture may be issued to one man.5. It provides for the payment fixed sum with interest of a specified rate by a specified time. But this is not essential because a company may issue perpetual debentures. Section 120 of the companies' act 1956 expressly provides for the issue of perpetual or irredeemable debentures w3hich are made payable only in the event of a winding up or some serious default with the company.6. It is generally secured by a charge, fixed or floating on any part of the company's property or undertaking. But this is, however, not an essential condition because section 2(12) provides that the debentures may or may not constitute a charge on the assets of the company.FromRohit Mathur Jaipur
What is the maximum time for a Fixed Deposit?
maximum time is 10 year
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 instrument and repays the principal normally, unless otherwise agreed, on maturity.These are long-term debt instruments issued by private sector companies. These are issued in denominations as low as Rs 1000 and have maturities ranging between one and ten years. Long maturity debentures are rarely issued, as investors are not comfortable with such maturitiesDebentures enable investors to reap the dual benefits of adequate security and good returns. Unlike other fixed income instruments such as Fixed Deposits, Bank Deposits they can be transferred from one party to another by using transfer from. Debentures are normally issued in physical form. However, corporates/PSUs have started issuing debentures in Demat form. Generally, debentures are less liquid as compared to PSU bonds and their liquidity is inversely proportional to the residual maturity. Debentures can be secured or unsecured.What are the different types of debentures?Debentures are divided into different categories on the basis of: (1)convertibility of the instrument (2) SecurityDebentures can be classified on the basis of convertibility into:· Non Convertible Debentures (NCD): These instruments retain the debt character and can not be converted in to equity shares· Partly Convertible Debentures (PCD): A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.· Fully convertible Debentures (FCD): These are fully convertible into Equity shares at the issuer's notice. The ratio of conversion is decided by the issuer. Upon conversion the investors enjoy the same status as ordinary shareholders of the company.· Optionally Convertible Debentures (OCD): The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue.On basis of Security, debentures are classified into:· Secured Debentures: These instruments are secured by a charge on the fixed assets of the issuer company. So if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors· Unsecured Debentures: These instrument are unsecured in the sense that if the issuer defaults on payment of the interest or principal amount, the investor has to be along with other unsecured creditors of the company.
What is the maximum jail time for a probation violation in sc?
The maximum time you can get jail time for VOP is the maximum sentence you would have received without probation.
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 and repays the principal normally, unless otherwise agreed, on maturity.These are long-term debt instruments issued by private sector companies. These are issued in denominations as low as Rs 1000 and have maturities ranging between one and ten years. Long maturity debentures are rarely issued, as investors are not comfortable with such maturitiesDebentures enable investors to reap the dual benefits of adequate security and good returns. Unlike other fixed income instruments such as Fixed Deposits, Bank Deposits they can be transferred from one party to another by using transfer from. Debentures are normally issued in physical form. However, corporates/PSUs have started issuing debentures in Demat form. Generally, debentures are less liquid as compared to PSU bonds and their liquidity is inversely proportional to the residual maturity. Debentures can be secured or unsecured.What are the different types of debentures?Debentures are divided into different categories on the basis of: (1)convertibility of the instrument (2) SecurityDebentures can be classified on the basis of convertibility into:· Non Convertible Debentures (NCD): These instruments retain the debt character and can not be converted in to equity shares· Partly Convertible Debentures (PCD): A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.· Fully convertible Debentures (FCD): These are fully convertible into Equity shares at the issuer's notice. The ratio of conversion is decided by the issuer. Upon conversion the investors enjoy the same status as ordinary shareholders of the company.· Optionally Convertible Debentures (OCD): The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue.On basis of Security, debentures are classified into:· Secured Debentures: These instruments are secured by a charge on the fixed assets of the issuer company. So if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors· Unsecured Debentures: These instrument are unsecured in the sense that if the issuer defaults on payment of the interest or principal amount, the investor has to be along with other unsecured creditors of the company.
