Scribd Logo
Upload

Welcome to Scribd!

  • Kinds of Debuntures: How Are They Classified and On What Basis?

    Uploaded by

    Krishnaveni S
    7 views8 pages
    Debentures can be classified into four main categories based on security, redemption, registration, and convertibility. Debentures are classified as secured or unsecured based on whether they have a fixed or floating charge against a company's assets. They are classified as redeemable or irredeemable based on whether the company is obligated to repay the principal at a specified date. Debentures are also classified as registered or bearer based on whether ownership is recorded or transferred through delivery. Finally, debentures are classified as convertible or non-convertible based on whether the holder can convert the debenture into shares of the issuing company.

    Original Description:

    class 12 accountancy project on types of debentures

    Original Title

    KINDS OF DEBUNTURES

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Debentures can be classified into four main categories based on security, redemption, registration, and convertibility. Debentures are classified as secured or unsecured based on whether they have a fixed or floating charge against a company's assets. They are classified as redeemable or irredeemable based on whether the company is obligated to repay the principal at a specified date. Debentures are also classified as registered or bearer based on whether ownership is recorded or transferred through delivery. Finally, debentures are classified as convertible or non-convertible based on whether the holder can convert the debenture into shares of the issuing company.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    7 views8 pages

    Kinds of Debuntures: How Are They Classified and On What Basis?

    Uploaded by

    Krishnaveni S
    Debentures can be classified into four main categories based on security, redemption, registration, and convertibility. Debentures are classified as secured or unsecured based on whether they have a fixed or floating charge against a company's assets. They are classified as redeemable or irredeemable based on whether the company is obligated to repay the principal at a specified date. Debentures are also classified as registered or bearer based on whether ownership is recorded or transferred through delivery. Finally, debentures are classified as convertible or non-convertible based on whether the holder can convert the debenture into shares of the issuing company.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 8

    KINDS OF

    DEBUNTURES
    How are they classified and on what basis?
    BASIS OF CLASSIFICATION

    1. security
    Debentures
    are
    2. redemption
    classified on
    4 basis
    3. registration
    4. convertibility
    1.On the basis of security

    Secured debentures Unsecured debentures

    ▪ Secured debentures are ▪ Unsecured debentures are


    those debentures that are those debentures that are not
    secured either by fixed or secured by a charge on assets
    floating charge on assets of of the company.
    the company .
    ▪ A charge on the asset of the
    company is registered with
    the Registrar of Companies
    2.On the basis of Redemption

    Irredeemable
    Redeemable debentures
    debentures

    ▪ Redeemable debentures ▪ Irredeemable debentures are


    are those debentures that those debentures that are not
    are repayable by the repayable during he lifetime
    company on maturity, i.e., at of the company and hence are
    the end of a specified period repaid only when the
    as per the terms of issue. company is wound up
    3.On the basis of Registration

    Registered debentures Bearer debentures


    ▪ Registered debentures are ▪ Bearer debentures are those
    those debentures that are debentures that are not
    registered the company’s registered in the records of the
    records in the name of the company in the name f the
    holder. holder.
    ▪ Principal and interest of such ▪ These debentures are
    debentures is payable to the transferable by mere delivery.
    registered debenture holders.
    ▪ Interest is paid to the person
    ▪ The transfer of debentures un who produces coupons
    this case requires the execution attached to the debentures.
    of transfer deed.
    4.On the basis of Convertibility

    Convertible debentures Non- convertible debentures

    ▪ Convertible debentures are those ▪ Non –convertible


    debentures that are convertible debentures are those
    into shares. debentures that are not
    ▪ If a part of the debenture amount convertible into shares .
    is convertible into equity shares,
    they are known as partly
    convertible debentures.
    ▪ If full amount of debentures are
    convertible to equity share, they
    are known as fully convertible
    equity debentures.
    DEBUNTURES

    BASED ON BASED ON BASED ON BASED ON


    SECURITY REDEMPTION REGISTRATION CONVERTIBILITY

    SECURED REDEEMABLE REGISTERED CONVERTIBLE

    NON-
    UNSECURED IRREDEEMABLE BEARER
    CONVERTIBLE
    THANK YOU

    You might also like