Unsecured debenture

If you go through the Master Circular 01/2009-10 dated 1st july 2009, it clearly says that Debenture means fully and mandatorily convertible debentures.

Pls find enclosed Master Circular2009-10

Rgds

Priya Sharma

thanx for the reply,

but what i am specifically looking for is whether a company can issue unsecured non convertible debentures.

The debenture’s concept becomes famous for the Investors who wants the Fixed Income & Security of their money.

And

The main provision of any debenture Issue is the Debenture trustees. Because they have to look whether Company's property is sufficient to pay off the debenture holders money.

Further, Debenture trust deed gives authority to sell the company's property. And The main provision of any debenture trust deed is the Company's property.

So, Majority of the provision of the company law can not be complied, That's why company can not issue the Unsecured debentures.

However, If you want to go with the Unsecured But Fixed Interest bearing security, Then Issue bonds.

Ankur Shah (Practicing Company Secretary)

“Guru Gautam” Bungalow, Inside Parshwa Tower,

Nr. Shyamal Cross Road, 132ft. Ring Road,

Satellite, Ahmedabad – 15

Contact: + 91-9427633901

E-mail: ankurjewel @ gmail.com

Blog: csankur.blogspot.com

The debentur's concept becomes famous for the Investors who wants the Fixed Income & Security of their money.

And

The main provision of any debenture Issue is the Debenture trustess. Because they have to look whether Company's property is sufficient to pay off the debenture holders money.

Further, Debeture trust deed gives authority to sell the company's property. And The main provision of any debenture trust deed is the Company's property.

So, Majority of the provison of the company law can not be complied, That's why company can not issue the Unsecured debentures.

However, If you want to go with the Unsecured But Fixed Interest bearing security, Then Issue bonds.

Ankur Shah (Practicing Company Secretary)

“Guru Gautam” Bungalow, Inside Parshwa Tower,

Nr. Shyamal Cross Road, 132ft. Ring Road,

Satellite, Ahmedabad – 15

Contact: + 91-9427633901

E-mail: ankurjewel @ gmail.com

Blog: csankur.blogspot.com