Development rebate reserve

Can development rebate reserve,share forfeiture  acc be used for redemption of debentures

Replies (2)
Quick Summary
This discussion clarifies the use of Development Rebate Reserve (DRR) for redeeming debentures. While DRR, funded by profits, cannot technically be used for this purpose, share forfeiture reserves are available as they are not claimable by shareholders. Therefore, DRR is generally not an option for debenture redemption.

No technically as the drr requires a portion of profits to be transferred to its account to repay liabilities.

Yes you can use share forfeiture reserve as this amount cannot be claimed by shareholders. 

No you cannot use development rebate reserve for redemption of debentures

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