Please let me know in detail the procedure of issue of both secured and unsecured debentures by ltd. co.
Sanjay K Pal (Employee) (133 Points)
05 February 2013Please let me know in detail the procedure of issue of both secured and unsecured debentures by ltd. co.
CA Rashmi Gandhi
(Chartered Accountant)
(86285 Points)
Replied 05 February 2013
By issuing debentures means issue of a certificate by the company under
its seal which is an acknowledgment of debt taken by the company.
The procedure of issue of debentures by a company is similar to that of the
issue of shares. A Prospectus is issued, applications are invited, and letters
of allotment are issued. On rejection of applications, application money is
refunded. In case of partial allotment, excess application money may be
adjusted towards subsequent calls.
Issue of Debenture takes various forms which are as under :
1. Debentures issued for cash
2. Debentures issued for consideration other than cash
3. Debentures issued as collateral security.
Further, debentures may be issued
(i) at par, (ii) at premium, and (iii) at discount
shankar
(CS)
(29 Points)
Replied 05 February 2013
kindly refer attachment- text taken from somewhere
CAclubindia
