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Question
Explain the following term/concept.
Redemption of debentures
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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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