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Question
A company issuing debentures with a maturity period of not more than 18 months, in that case the creation of Debenture Redemption Reserve will be:
Options
10% of the amount of debentures outstanding
25% of the amount of debentures outstanding
50% of the amount of debentures outstanding
None of the above
MCQ
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Solution
None of the above
Explanation:
As per the applicable rules, no Debenture Redemption Reserve (DRR) is required to be created for debentures with a maturity period of not more than 18 months, as these are considered short-term instruments.
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