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Can public company issue debentures?
Yes
Which company can issue debenture?
Any company, whether public or private, can issue debentures as a means of raising capital. However, it is more common for large corporations and public companies to issue them due to their ability to meet regulatory requirements and attract investors. Debentures are typically issued by companies with a stable financial position, as they are essentially a form of long-term debt that requires regular interest payments.
Can company issue debentures on pari passu clause basis?
Yes, a company can issue debentures on a pari passu clause basis, which means that the debentures will rank equally in terms of repayment and security among other debts or debentures issued by the company. This arrangement ensures that all creditors with pari passu claims will share equally in the assets of the company in the event of liquidation. However, the specifics regarding the pari passu ranking should be clearly outlined in the terms of the debenture issuance and comply with relevant laws and regulations.
Can a company issue debentures with pari passue clause?
Yes, a company can issue debentures with a pari passu clause. This clause ensures that the debentures rank equally with other debts in terms of repayment and claims on assets in the event of liquidation. It provides assurance to investors that they will be treated equally with other creditors, enhancing the attractiveness of the debenture issue. However, the specific terms and conditions must be clearly outlined in the debenture agreement.
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
Can public company issue debentures?
Yes
Which company can issue debenture?
Any company, whether public or private, can issue debentures as a means of raising capital. However, it is more common for large corporations and public companies to issue them due to their ability to meet regulatory requirements and attract investors. Debentures are typically issued by companies with a stable financial position, as they are essentially a form of long-term debt that requires regular interest payments.
Can company issue debenture with pari passu clause?
YES, a company can issue its debentures with a pari passu clause when they are issued in series. This implies that the debentures shall be paid proportionately. This assumes an added advantage when the company is short of cash & does not have the amount to make payment for debentures.In such case, all the debentures held by a creditor of the company ranked equal as regard charge and repayment with the others of that series. However, a company cannot give this right tto its new debentureholder of its old debentures unless it is expressly authorised to do so.
Can company issue debentures on pari passu clause basis?
Yes, a company can issue debentures on a pari passu clause basis, which means that the debentures will rank equally in terms of repayment and security among other debts or debentures issued by the company. This arrangement ensures that all creditors with pari passu claims will share equally in the assets of the company in the event of liquidation. However, the specifics regarding the pari passu ranking should be clearly outlined in the terms of the debenture issuance and comply with relevant laws and regulations.
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.
Can a company issue debentures with pari passue clause?
Yes, a company can issue debentures with a pari passu clause. This clause ensures that the debentures rank equally with other debts in terms of repayment and claims on assets in the event of liquidation. It provides assurance to investors that they will be treated equally with other creditors, enhancing the attractiveness of the debenture issue. However, the specific terms and conditions must be clearly outlined in the debenture agreement.
Discount on issue of debentures is a?
capital loss to be written off over the tenure of the debentures .
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
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.
What is right debentures?
Right debentures are a type of debt instrument issued by a company that allows existing shareholders to purchase additional debentures at a predetermined price, typically during a rights issue. This gives shareholders the opportunity to maintain their proportional ownership in the company while providing the company with capital for financing. Right debentures often come with specific terms regarding interest rates and maturity, and they may be convertible into equity under certain conditions.
What is issue of debentures?
The issue of debentures refers to the process by which a company raises capital by offering debt securities to investors. Debentures are essentially loans made by investors to the company, which promises to pay back the principal amount along with interest at specified intervals. This method of financing allows companies to access funds without diluting ownership, but it also imposes a legal obligation to make interest payments and repay the principal, regardless of the company's financial performance.
Under what conditions may the directors of acompany prefer to issue ordinary shares rather than debentures?
ordinary shares are equity whereas debentures are debt - debt is always payable, whereas, equity holders do not always necessarily demand a dividend payment immediately. it would depend on what the company wanted to use the funds for. if the funds were used to fund a project where the returns were not expected for a few years, a company may wish to issue shares rather than debentures as the debentures would have to be paid regardless of when the returns came.
