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Why companies issue debentures?

Updated: 9/23/2023
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Q: Why companies issue debentures?
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Discount on issue of debentures is a?

capital loss to be written off over the tenure of the debentures .


How do you make debentures more popular.?

the companies that have issued debentures in recent years.give suggestions to make debentures more popular?


Which Indian companies recently issued debentures?

recently which industry/company had issued its debentures


Which Indian companies have recently issued debentures?

recently which industry/company had issued its debentures


Companies issued debentures in recent year?

1) Muthoot Finances announced the issue of Non-convertible Debentures for Rs 150 cr. 2) Reliance capital issued Rs 500 cr Non-convertible debentures. 3) Shriram Transport Finances announced the launch of its second secured redeemable non-convertible debentures issue to raise Rs 500 cr. 4) Tata Global Beverages said it raised Rs 325 cr in private placement of debentures.


Can public company issue debentures?

Yes


Can private company issue debentures?

YES!


Which companies issued debentures recently in Pakistan?

Recently Engro Pakistan sold debentures to general public!


What is debenture explain in simple term?

Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.


How do you make the debenture more popular?

the companies that have issued debentures in recent years.give suggestions to make debentures more popular?


Issued debentures by Mahindra and mahindra?

which year mahinra and mahindra issue debenture


When to create a Debenture Redemption Reserve?

Most companies retire debentures by issuing another set of debentures, hence, most companies don't park funds for retiring debentures by creating any fund. The bond market will surely get affected negatively by such a move of the ministry of corporate affairs. Section 117C of the Companies Act, 1956, requires every company issuing debentures to create a debenture redemption reserve (DRR) for the redemption of such debentures and transfer an 'adequate' amount from its profits every year to such DRR until the issued debentures are redeemed. Hence, every issue of redeemable debentures requires creation of a DRR. The said Section, however, does not provide the meaning of the word 'adequate'. In the year 2002, the ministry of corporate affairs (MCA) issued a circular clarifying the meaning of 'adequate' and provided the percentage which is mandatorily required to be transferred to DRR by certain class of companies. However, to develop the bonds market, MCA issued another clarification circular on 11 February 2013 (Circular 2013)