Issue of debuntures

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Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2011 Can a company repurchase its own debentures?What are the provisions in the companies act?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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10 November 2011 Yes Can Purchase

RG - A Helping Hand

RG - A Helping Hand (Expert)
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11 November 2011 There is nothing like repurchase of its own debenture by a company. Issue of debenture is a kind a loan taken from debenture holders by issuing debenture to them as loan certificate.

As per the terms of issue of debenture the company can redeem its debenture by paying the amount borrowed from issue of debenture.

RG

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2011 I meant buyback of debentures by the company just like the buyback of shares.

RG - A Helping Hand

RG - A Helping Hand (Expert)
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12 November 2011 No there is no provision in company law for buyback of deb.

However by re-paying the debt you may redeem the deb.

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