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Question
No debenture redemption reserve is required for debentures issued by ______.
Options
manufacturing companies
infrastructure companies
banking companies
trading companies
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Solution
No debenture redemption reserve is required for debentures issued by banking companies.
Explanation:
Banking companies are not required to create a debenture redemption reserve because they are already strictly regulated by the Reserve Bank of India and follow special financial norms, reducing the risk to debenture holders.
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