What is the difference between bond & debenture

The fundamental difference between debentures and bonds is that the former is normally secured whereas the latter is not. Hence in general, bonds are issued at a higher interest rate than debentures.

Different countries have different interpretations of both the terms ‘corporate bonds’ and ‘debentures’. In India, the terms ‘corporate bonds’ and ‘debentures’ are interchangeably used.

As per Companies Act Section 2(12), "Debenture" includes debenture stock bonds and any other securities of a company, whether constituting a charge on the assets of the company or not.

Thus, the Companies Act 1956 identifies both as same.