How can I get debenture certificate?
How can I get debenture certificate?
Procedure to Issue Debentures
- Offer letter for private placement in Form No.
- Approval of Form No.
- Sanction of Debenture Trustee Agreement and appointment of a Debenture Trustee.
- Appointment of an expert for approval of increase of borrowing powers, if required.
What is the debenture certificate?
Debenture Certificate is a document that certifies that the holder is the creditor of the company for the amount mentioned in the certificate. It is issued to all debenture holders. It is issued within a period of six months from the date of allotment of debentures.
What are 3 types of debentures issued by company describe in detail?
Types of Debentures
- Redeemable and Irredeemable (Perpetual) Debentures.
- Convertible and Non-Convertible Debentures.
- Fully and Partly Convertible Debentures.
- Secured (Mortgage) and Unsecured (Naked) Debentures.
- First Mortgaged and Second Mortgaged Debentures.
- Registered Unregistered Debentures (Bearer) Debenture.
What type of debenture can be issued by an Indian company?
Non-convertible debentures can either be unsecured or secured. These type of debentures are usually redeemed only on the maturity of a predetermined period which may be 10 or 20 years. These instruments retain the debt character and can not be converted into shares.
Can private company list debentures?
CAN A PRIVATE COMPANY LIST ITS DEBENTURES? Yes, a Private Company can issue bonds/debenture under the Companies Act 2013. There are regulations with respect to maintain asset cover, credit score rating, debenture redemption reserve, hold liquid assets for current maturities, etc.
Why debentures are issued?
Debentures generally have a more specific purpose than other bonds. While both are used to raise capital, debentures typically are issued to raise capital to meet the expenses of an upcoming project or to pay for a planned expansion in business.
What is the income of debenture holder?
The debenture holder earns income in the form of a fixed rate of interest.
What are the stages of debentures?
(i) Issue of debentures; (ii) Creation of provision for their redemption; (iii) Redemption of debentures.
What is difference between debentures and shares?
Share is the capital of the company, but Debenture is the debt of the company. The shares represent ownership of the shareholders in the company. On the other hand, debentures represent indebtedness of the company. The income earned on shares is the dividend, but the income earned on debentures is interest.
How many debentures can be issued?
Appointment of Debentures Trustee A Company cannot issue debentures to more than 500 people without appointing a debenture trustee, whose duty would be to protect the interest of Debenture Holders and redress their grievances.
Can debentures be issued for 20 years?
The redemption date for secured debentures cannot be more than 10 years from the date of issue. There are a few types of companies that may issue protected debentures that are longer than 10 years but not longer than 30 years. Companies that are active in the creation of infrastructure projects.
What is the penalty for not issuing debenture certificate in India?
As per Section 56 (6) If a Company failed to issue Debenture Certificate withing prescribed time limit then it shall be made liable to pay a fine minimum of 25,000 rupees which may extend to 5,00,000 rupees. The officer who is in default shall by punished with a fine which is 10,000 rupees minimum and extending to 1,00,000 rupees.
What is a debenture certificate?
Debenture Certificates are issued under the common seal of the company. The debenture certificate is a document, which certifies that the holder is the creditor of the company to the limit of a number of debentures multiplied by the face value of each debenture.
What is the T&C for issuing secured debentures?
If Company is issuing secured debentures T & C for issuance of such debentures are given in Rule 18of the Companies (Share Capital and Debentures) Rules, 2014. Debentures are normally secured by a charge on the undertaking of the company and all its property, present and future.
Can a company issue debentures without a director?
There is an exemption as per Deposit Rules, company issue debentures on conditions other than mentioned above to Directors, Relative of Directors, Companies and Foreigners. Whetherdebenture is part of Share Capital?
