Procedure with roc for issuing debenture

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2013 Please some one tell me the procedure with ROC for issuing debentures

Ajay Mishra

Ajay Mishra (Expert)
Follow

18 December 2013 Hi

Section 2(12) of the Companies Act defines the term "debenture" which includes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not.
In a simple meaning, a debenture means a document, which either creates a debt or acknowledges it, any document which fulfills either of these conditions is a debenture. It may be defined as a certificate of debt or loan given under the common seal of the company evidencing that the company undertakes to pay specified amount with interest.
Debentures are not part of share capital, it is a loan capital and company is liable to pay interest thereon whether there are profits or not. Debentures may be secured by way of creating charge on the assets of the company or by way of mortgage of company's property.

You will file Form-23 and Form-8 if it is secured and Form-10 if it is series of debentures with ROC.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now