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Question
A Company issuing debentures with a maturity period of not more than ______ need not create Debenture Redemption Reserve.
Options
2 months
6 months
12 months
18 months
MCQ
Fill in the Blanks
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Solution
A Company issuing debentures with a maturity period of not more than 18 months need not create Debenture Redemption Reserve.
Explanation:
As per the Companies (Share Capital and Debentures) Rules, no Debenture Redemption Reserve (DRR) is required for debentures with a maturity period of not more than 18 months, since they are considered short-term debentures.
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