The Debentures:
1. are a type of debt instrument
2. are always issued against the assets of a company
3.always provide higher returns in comparison to Equity shares
Select the correct statements from the codes given below:

Answer: [A] Only 1 is correct

The most basic features of Debentures are as follows:

  • A debenture acknowledges a debt
  • It is in the form of certificate issued under the seal of the company. It usually shows the amount & date of repayment of the loan.
  • It has a rate of interest & date of interest payment.
  • Normally debentures are secured & issued against the assets of the company. However, not always the debentures are secured

This question is a part of GKToday's Integrated IAS General Studies Module