What is debenture bond under companies act 2013?
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A debenture is an instrumentof debt executed by the company acknowledging its obligation to repay the sumat a specified rate and alsocarrying an interest. It is one of the methods of raising the loan capital of the company. Adebentureis thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to paya specified amount with interest and although the money raised by the debentures becomes a partof the company’s capital structure, it does not become share capital.
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