Sources of Corporate Finance — Secretarial Practice STD 12 Commerce / Arts — Question

According to you, which type of share Mr. Satish will choose to invest in.

Mr. Satish is a speculator. He desires to take advantage of the growing market for the company’s products and earn handsomely.

ABC Limited is going to redeem its 1000 debentures of ₹ 100 each. Please advise them on the following: Question (a).Which fund should be created by the company to redeem debentures? Question (b). Can debenture trustees consult NCLT if the company is at default?Question (c) What will be the change in the register of debenture holders?

Should the company appoint a Debenture trustee?

Can the company issue unsecured debentures?

The return on investment which he receives is fixed or fluctuating.

DDS financial plans to raise ₹ 10 crores by issuing secured, Non-convertible debentures. However, as per the Articles of Association, the board of directors has authority only to raise up to 5 crores. They are also considering whether to go for a private placement or make a public offer. Please advise them on the following:

Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in the definite rate of income and safety of the principal.

There are 2 companies namely company A and company B with the same financial positions and in the same line (producing the same type of products) willing to issue debentures to more than 500 people. Company A is issuing 12% redeemable debentures to be redeemed after 5 years and Company B is issuing 12% convertible debentures which will be converted after 5 years. As an investor.Question (a). Which company would one like to invest in? Question (b) Is it worth investing or going for convertible or redeemable? Why? Question (c) Is there any party to be appointed to look into the safety of debenture holders?

Can the tenure of debentures be less than ten years?