Question

State whether the following statement is True (T) or False (F):

The debentures cannot be issued at a discount of more than 10% of the face value.

Answer 1

This statement is false.

Explanation:

Unlike equity shares, there is no legal maximum limit prescribed under the Companies Act, 2013, regarding the discount rate at which a company can issue its debentures. A company is entirely free to issue debentures at any discount rate, depending on market conditions and its commercial needs.