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Companies issue debentures to raise additional funds without diluting ownership, as issuing shares can lead to a reduction in existing shareholders' control and earnings per share. Debentures provide fixed interest payments, making them attractive for raising capital for specific projects or to finance operations. Additionally, interest payments on debentures are tax-deductible, which can enhance the company's overall financial efficiency. This allows companies to leverage debt strategically while maintaining equity structure.
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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 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 is a value bond?
a bond is a long term debt instrument or securried. bonds issue by the government do not have any risk of default the private sector company also issue bonds which are bonds debenture on india.
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.
What is debenture explain in simple term?
Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.
Why premium on redemption of debenture credit at the time of issue of debenture?
It is capital loss of the company. It comes only in the time when redeem debenture. It is shown when we issue the debenture because it is one of the redeemable condition. it is loss of future but comes in balance sheet as separate account the name of premium redemption account in liability side so, it is carried at the time of issue.
What is the nature of debenture suspense account?
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
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 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 is a value bond?
a bond is a long term debt instrument or securried. bonds issue by the government do not have any risk of default the private sector company also issue bonds which are bonds debenture on india.
Issued debentures by Mahindra and mahindra?
which year mahinra and mahindra issue debenture
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.
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.
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 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
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.
For the company who had already have IPO mif they want to issue the new shares are they need to make another IPO?
No. A company can issue an IPO only once. They can issue new shares through bonus shares or through rights issues.
