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To receive interest/redemption in due time.
To receive a copy of the trust deed on request.
To apply for winding up of the company if the company fails
to pay its debt.
To approach the Debenture Trustee with your grievance.
You may note that the above mentioned rights may not necessarily be absolute. For example, the right to transfer
securities (in physical mode) is subject to the company's right to refuse transfer as per statutory provisions.
What else can I help you with?
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.debenture holder is the creditor of a company.they have fixed rate of interest.they have a maturity period.they dont have right to vote.debentures are redeemed.they are not volatile.they have no risk.they have low return.
What is the face value of a debenture?
The face value of a debenture, also known as its par value or principal amount, is the amount that the issuer agrees to pay the debenture holder at maturity. It is typically the original investment amount and is used to calculate interest payments, which are usually expressed as a percentage of the face value. For example, if a debenture has a face value of $1,000 and an interest rate of 5%, the holder would receive $50 in interest annually until maturity.
Why DRR is not debited to debenture holder ac at the time of redeemtion?
Debenture Redemption Reserve (DRR) is a statutory requirement in many jurisdictions to ensure that companies set aside funds to meet their future obligations for debenture repayments. It is not debited to the debenture holder's account at the time of redemption because DRR is an internal reserve created from the company's profits, meant to safeguard against defaulting on debenture payments. Instead, the redemption amount is paid directly to the debenture holders, while the DRR remains as a separate accounting entry on the company's balance sheet until it is utilized for redemption. This helps maintain transparency and ensures that the funds are available for the intended purpose.
How is a debenture redeemed?
A debenture is typically redeemed at its maturity date, where the issuer repays the principal amount to the debenture holder. This can occur through a lump-sum payment or in installments, depending on the terms outlined in the debenture agreement. Additionally, issuers may have the option to redeem debentures early, often at a premium, under specific conditions. Redemption procedures and terms should be clearly stated in the debenture documentation.
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 forfiet a debenture and treat it as a capital profit because they are not owners is this explanation coreect for that question?
Is debenture holder a customer of the company?
NO,debenture holder is the creditor of the company
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.debenture holder is the creditor of a company.they have fixed rate of interest.they have a maturity period.they dont have right to vote.debentures are redeemed.they are not volatile.they have no risk.they have low return.
What is a debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
What is debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
Income earned by a debenture holder is called?
interest
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 debenture holders have no right to attend and vote at the meetings of the share holders. Answered By:- Karunakar Gautam DCE Student
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 maturity period.
In corporate law is trustee for debenture holder also known as a guarantor?
No, trustee is different from a guarantor.
What is the face value of a debenture?
The face value of a debenture, also known as its par value or principal amount, is the amount that the issuer agrees to pay the debenture holder at maturity. It is typically the original investment amount and is used to calculate interest payments, which are usually expressed as a percentage of the face value. For example, if a debenture has a face value of $1,000 and an interest rate of 5%, the holder would receive $50 in interest annually until maturity.
Why DRR is not debited to debenture holder ac at the time of redeemtion?
Debenture Redemption Reserve (DRR) is a statutory requirement in many jurisdictions to ensure that companies set aside funds to meet their future obligations for debenture repayments. It is not debited to the debenture holder's account at the time of redemption because DRR is an internal reserve created from the company's profits, meant to safeguard against defaulting on debenture payments. Instead, the redemption amount is paid directly to the debenture holders, while the DRR remains as a separate accounting entry on the company's balance sheet until it is utilized for redemption. This helps maintain transparency and ensures that the funds are available for the intended purpose.
What is transfer of debenture?
Transfer of a debenture refers to the process of transferring ownership of a debenture from one party to another. This typically involves the endorsement of the debenture by the current holder and the registration of the new owner with the issuing company or its registrar. The transfer may be subject to specific terms outlined in the debenture's indenture, including any restrictions on transferability. Ultimately, it allows investors to buy and sell debentures in the secondary market.
How is a debenture redeemed?
A debenture is typically redeemed at its maturity date, where the issuer repays the principal amount to the debenture holder. This can occur through a lump-sum payment or in installments, depending on the terms outlined in the debenture agreement. Additionally, issuers may have the option to redeem debentures early, often at a premium, under specific conditions. Redemption procedures and terms should be clearly stated in the debenture documentation.
