Question...
This query is : Resolved
Meraj Khan
(Querist)
22 February 2014
plzz sir, what is debenture??? explain it.
Nikhil Kaushik
(Expert)
22 February 2014
A debenture is an instrument of debt executed by the company acknowledging its
obligation to repay the sum at a specified rate and also carrying an interest. It is
one of the methods of raising the loan
capital of the company. A debenture is
thus like a certificate of loan or a loan
bond evidencing the fact that the company
is liable to pay a specified amount with
interest and although the money raised by
the debentures becomes a part of the company's capital structure, it does not
become share capital.
obligation to repay the sum at a specified rate and also carrying an interest. It is
one of the methods of raising the loan
capital of the company. A debenture is
thus like a certificate of loan or a loan
bond evidencing the fact that the company
is liable to pay a specified amount with
interest and although the money raised by
the debentures becomes a part of the company's capital structure, it does not
become share capital.
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