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प्रश्न
What is meant by the 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 Articles of Association, only then may it purchase its own debentures from the open market. The main purpose of such a purchase is as follows:
- For immediate cancellation of debenture liability, if the interest rate on its debenture is higher than the market rate of interest.
- A company may also purchase its own debentures with the motive of investment and sell them at a higher price in future and thereby earn profit.
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संबंधित प्रश्न
What is meant by ‘Premium on Redemption of Debentures’?
How would you deal with ‘Premium on Redemption of Debentures’?
What is meant by redemption of debentures out of Capital?
Explain the guidelines of SEBI for creating the Debenture Redemption Reserve.
Describe the steps for creating a sinking fund for the redemption of debentures.
Can a company purchase its own debentures in the open market? Explain.
What is meant by the conversion of debentures? Describe the method of such a conversion.
Own debentures are those debentures of the company which ______.
Profit on cancellation of own debentures is transferred to ______.
Which of the methods can be adopted to write off discount/loss on issue of debentures against the revenue profits?
Shashi Ltd. decided to redeem its 8,000, 11% Debentures of ₹ 100 each at a premium of 10%. The minimum amount transferred to Debenture Redemption Reserve will be: (assume that the company is not listed)
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?
If debentures purchased in the open market are not immediately cancelled, they are treated as:
Debentures can be redeemed out of:
Premium on Redemption of Debentures Account is a ______ Account.
Premium on Redemption of Debentures Account is a ______.
What is the nature of Premium on Redemption of Debenture Account?
