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Corporate & Other Laws Debentures Meaning | CA Inter Online Course

CA Inter Corporate and Other Laws Debentures Meaning & Types of Debentures DEBENTURES MEANING Debentures are a debt instrument utilized by organizations and the government to provide credit to business entities. The loan is given to corporate (depending on their reputation) at a fixed rate of interest. Debentures are otherwise referred to as a “bond” which plays the role of an IOU among buyers. Organizations use  debentures  when they have to procure cash at a rate of interest, for its extension. The four  types of debentures  are Secured and Unsecured, Registered and Bearer, Convertible and Non-Convertible, First and Second. They are essential for raising long-term debt capital. An organization can raise capital through the use of debentures, which has a fixed rate of interest on it. The debenture taken by an organization is an affirmation that the organization has acquired cash from the general members of society, which it vows to reimburse sometime not too far off. Debenture hol