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प्रश्न
Short Answer Question
What is meant by redemption of debentures by ‘Purchase in the Open Market’?
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उत्तर
According to the Company Act, if a company is authorised by its Article of Association, only then it may purchase its own debentures from the open market. The main purpose of such purchase is as follows:
1. For immediate cancellation of debenture liability, if the interest rate on its debenture is higher than the market rate of interest.
2. A company may also purchase its own debentures with the motive of investment and sell them at higher price in future and thereby earn profit.
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संबंधित प्रश्न
Short Answer Question
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Short Answer Question
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Long Answer Question
Differentiate between redemption of debentures out of capital and out of profits.
Long Answer Question
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Long Answer Question
Can a company purchase its own debentures in the open market? Explain
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"Purchase of own debentures by the company for cancellation" ·
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According to SEBI guidelines, what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redemption of debentures, in the case of convertible debentures?
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Sources of finance for the redemption of debentures are ______.
