Question

Assertion (A): Debentures can be issued at a discount of any percentage of nominal (face) value.

Reason (R): The Companies Act, 2013, does not restrict issue of debentures on discount.

In the context of above two statements, which of the following is correct?

Options

• Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).

• Only Reason (R) is correct.

• Both Assertion (A) and Reason (R) are wrong.

Answer 1

Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).