English

Explain the following term/concept. Redemption of debentures

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Question

Explain the following term/concept.

Redemption of debentures

Short/Brief Note
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Solution

Redemption of debentures means repayment of the debentures by the company to the debenture holders. Debentures are redeemed on maturity or expiry of the period for which they were issued. A Debenture Redemption Reserve Fund (DRRF) is created by the company for the purpose of redemption of debentures.

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Correspondence with Debentureholders - Specimen Letters
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Chapter 7: Correspondence with Debentureholders - EXERCISE [Page 115]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 7 Correspondence with Debentureholders
EXERCISE | Q 2. 4. | Page 115

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Draft a letter to debentureholder informing him about redemption of debentures.


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