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There are four different types of debentures namely: (1)Fully Convertible Debenture (2)Party Convertible Debenture (3)Non- convertible Debenture (4)Mortgage Debenture

The company raises capital by issuing the stock as a form of debt. The debts are to be repaid at a specific interest rate after a specified period. The debenture trustees are the representatives of debenture holders. They give protection to the interest of the debenture holders.

According to Sir Francis Parmer, "A document acknowledging the company's debt, stamped with the company's general seal.""A company is a sealed document in which the company acknowledges the debt of the amount borrowed on a fixed amount, at a fixed interest rate, subject to repayment after a fixed period."

The name of the registered debenture holder is indicated in the debenture and is recorded in the company register. The procedure prescribed for the replacement of such debentures has to be followed. Interest is what is registered in the company register.

The company pays interest on the debenture at a fixed time and at a fixed rate.

• The company has the right to report their approval before making a mortgage property decision.
• If the company does not repay the debenture money on time after the due date, the company has the right to sell the property and pay the money.
• The right to protect the interest of the debenture holder is vested in the Debenture Trustee Trust Deed.

Convertible debentures give holders the option to convert the company debentures into equity shares, while non-convertible debentures cannot be converted into equity share market.

(1) Right to receive interest on debentures at fixed time and at fixed rate. (2) The right to a refund on the expiry of the debenture period.

(1) Resolution in the meeting of the Board of directors.(2) Resolution at the general meeting of the company.
(3) Approval of SEBI
(4) Issue Prospectus.
(5) Appointment of debenture trustees.
(6) Agreement with warranty brokers.
(7) Opening an account in a scheduled bank.
(8) Registration in the stock market.
(9) Preparation of Debenture Distribution Form.
(10) Certificate of debenture.

(1) Mortgage debenture. (2) Fully convertible debenture. (3) Partially convertible debentures (4) Non-convertible debentures.

When a company issues a debenture, the property is mortgaged against it.

• This can be a static or floating charge.
• A fixed charge arises when certain properties are mortgaged and a floating charge arises when all properties are mortgaged.
• Thus, the charge on property can be static or floating.

The main points of the debenture issuance procedure are as follows.

1. Resolution to issue debentures.
2. Consent of members.
3. Permission of Reserve Bank of India.
4. Advertisement or statement of revenge.
5. Appointment of Trustee.
6. To enter into a warranty agreement.
7. Opening an account in a scheduled bank.
8. Listing in the stock market.
9. Preparation of Debenture Distribution Form and.
10. To prepare debenture certificate.