There are different types of debentures, which probably used now days for raising finance but before moving towards the types of debentures, let's see what is debenture. Check out the debenture meaning, types, issue of debentures along with conditions for issue of debentures as per companies act 2013 a debenture is an instrument of debt executed by the. February 7, 2012 wwwfinancenmoneyin wwwfinancenmoneyin types of debentures a debenture is a debt instrument similar to a bond but bonds are secured while debentures are not. Types of debentures debentures may be classified as under: 1 from payment/tenure point of these debentures are transferable by mere delivery the name of the holder is not registered with.
4) redeemable debentures or irredeemable debentures 5) fully convertible debentures convertible debentures are the debentures which can be converted into equity shares of the. Types of debentures - learn more about debentures and some basic and advanced concept which includes advantages and disadvantages, importance, limitations, characteristics, types, features. 1 registered debentures and bearer debentures: registered debenture is one which is registered in the name of a holder in the books of the company it is transferable in the same way as a share. Loading the major types of debentures are as follows: 1types of debentures on the basis of record point of view a registered debentures these are the debentures that are registered with.
2 types of debentures on the basis of security a secured or mortgage debentures these are the debentures that are secured by a charge on the assets of the company. In these types of debentures, the debenture is given priority of payment after other debts, when a company goes into liquidation they are also known as subordinated loan, subordinated bonds. In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest the legal term debenture originally referred to a document that either creates a debt or acknowledges it. These types of debentures are only payable to the individuals who are registered in the list of these types of debentures are repayable after a given time by installments or in lump sum amount.
According to their types different debentures have different characteristics that are completely for example the redeemable debentures have a specific date of redemption on their certificate. Types of debentures: the debentures are classified on the basis of the terms and conditions of their issue by the company the main types of debentures are as under. There are two types of debentures as of 2016: convertible and nonconvertible nonconvertible debentures are regular debentures that cannot be converted into equity of the issuing corporation.
Types of equity shares: a blue chip shares: the big companies which have the potential to dictate the 2 preference shares: it has the qualities of both equity shares and debentures as in case of. Types of debenture 1 non convertible debentures (ncd): these instruments retain the debt character and can not be converted in to equity shares 2 partly convertible debentures (pcd): a. Non-convertible debentures: as the name suggests such debentures do not have an option to be converted to shares or any kind of equity these are the most common type of debentures.
Types of debentures :- in corporate finance, a debenture is a medium- to in this video i have tried to explain types of debentures such as secured and unsecured debentures, registered debentures. The debentures provide for a fixed rate of interest to the debenture holders to attract such type of investors to lend money as a loan, bonds and debentures are issued. Types of debentures resource type: articles/knowledge posted date: 15 mar 2010 sharing author: mohammed julfekar member level: gold haider rating: points: 10 (rs 10) category: education.
There are several types of debentures on the basis of security, performance, priority, convertibility and records contentson the basis of securityon the basis of perfor. Type # 2 secured or mortgaged debentures: these debentures are given security on assets of the company in case of default in the payment of interest or principal amount, debenture-holders can sell. Types of debenture as follows first debentures second debentures convert-able debentures non-convert-able debentures mortgage debentures redemable debentures irredeemable.
Know the types of debentures and why debentures are helpful types of debentures indianmoneycom research team | updated on saturday, august 11,2018, 02:31 pm. Classification of debentures: debentures can be classified in different ways different types of debenture classified from various points of view are as follows.