{"id":2432,"date":"2019-09-23T05:30:13","date_gmt":"2019-09-23T05:30:13","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2432"},"modified":"2019-09-23T05:30:13","modified_gmt":"2019-09-23T05:30:13","slug":"debentures","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/debentures\/","title":{"rendered":"DEBENTURES"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/debentures\/#MEANING\" title=\"MEANING\">MEANING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/debentures\/#FEATURES_OF_DEBENTURES\" title=\"FEATURES OF DEBENTURES\">FEATURES OF DEBENTURES<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/debentures\/#WRITTEN_ACKNOWLEDGEMENT_OF_DEBT\" title=\"WRITTEN ACKNOWLEDGEMENT OF DEBT\">WRITTEN ACKNOWLEDGEMENT OF DEBT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/debentures\/#CERTIFICATE_OF_INDEBTEDNESS\" title=\"CERTIFICATE OF INDEBTEDNESS\">CERTIFICATE OF INDEBTEDNESS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/debentures\/#CONTRACT\" title=\"CONTRACT\">CONTRACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/debentures\/#RETURN\" title=\"RETURN\">RETURN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/debentures\/#TERMS_OF_ISSSUE\" title=\"TERMS OF ISSSUE\">TERMS OF ISSSUE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/debentures\/#STATUS_OF_THE_COMPANY\" title=\"STATUS OF THE COMPANY\">STATUS OF THE COMPANY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/debentures\/#VARIOUS_TYPES\" title=\"VARIOUS TYPES\">VARIOUS TYPES<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"meaning\"><span class=\"ez-toc-section\" id=\"MEANING\"><\/span>MEANING<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">Debentures is an instrument issued by the company acknowledging its debt. It is issued by the company under its seal. It is a contract for the repayment of the amount borrowed by the company from the debentureholder after certain period or at the option of company.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ACCORDING TO SECTION 2 (30) OF THE COMPANIES ACT, 2013<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">\u201cDebenture includes debenture stock, bonds and any other\nsecurities of the company whether constituting a charge on the company\u2019s assets\nor not.\u201d<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ACCORDING TO JUSTICE WHITY<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">\u201cDebenture is a document which either creates a debt or\nacknowledges it.\u201d<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"features-of-debentures\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_DEBENTURES\"><\/span>FEATURES OF DEBENTURES<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">The following are the features of debentures:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"written-acknowledgement-of-debt\"><span class=\"ez-toc-section\" id=\"WRITTEN_ACKNOWLEDGEMENT_OF_DEBT\"><\/span>WRITTEN ACKNOWLEDGEMENT OF DEBT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Debenture is a written acknowledgement of debt issued under\nthe common seal of the company which is repayable after specified period or at\nthe option of the company. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"certificate-of-indebtedness\"><span class=\"ez-toc-section\" id=\"CERTIFICATE_OF_INDEBTEDNESS\"><\/span>CERTIFICATE OF INDEBTEDNESS<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Debenture is issued by the way of granting the certificate of indebtedness on behalf of the company to the debentureholder.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"contract\"><span class=\"ez-toc-section\" id=\"CONTRACT\"><\/span>CONTRACT<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Issue of debenture is a kind of contract made between the company and the debentureholder. The contract contains the details about the type of debenture issued, rate of interest as well as mode of repayment of the amount borrowed.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"return\"><span class=\"ez-toc-section\" id=\"RETURN\"><\/span>RETURN<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The return on the debenture is paid in the form of rate of interest. Interest is provided to the debentureholders, may it be quarterly, half-yearly or yearly.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"terms-of-isssue\"><span class=\"ez-toc-section\" id=\"TERMS_OF_ISSSUE\"><\/span>TERMS OF ISSSUE<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The debenture can be issued at par, premium and discount. These can be issued for cash, for consideration other than cash and as collateral security.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"status-of-the-company\"><span class=\"ez-toc-section\" id=\"STATUS_OF_THE_COMPANY\"><\/span>STATUS OF THE COMPANY<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The company issuing the debenture has the status of borrower. The company is a debtor to the debentureholder ad debentureholder is the creditor to the company. That is why the debenture are also known as creditorship security.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"various-types\"><span class=\"ez-toc-section\" id=\"VARIOUS_TYPES\"><\/span>VARIOUS TYPES <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Debenture is of various types like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Registered and Bearer debenture<\/li><li>First and second debenture<\/li><li>Redeemable and irredeemable debenture<\/li><li>Secured and unsecured debenture<\/li><li>Convertible and non-convertible debenture<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>MEANING Debentures is an instrument issued by the company acknowledging its debt. It is issued by the company under its seal. It is a contract for the repayment of the amount borrowed by the company from the debentureholder after certain period or at the option of company. ACCORDING TO SECTION 2 (30) OF THE COMPANIES&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/debentures\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;DEBENTURES&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2436,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,102],"tags":[160],"class_list":["post-2432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-12-accountancy","category-corporate-accounting","tag-features-of-debentures"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2432"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2436"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}