Procedure for allotment of Debenture should be completed within ___________ from the date of receipt of applications.
- A6 months
- B3 months
- ✓60 days
Answer: C.
View full solution →Question types
Issue of Debentures question types
175 questions across 16 question groups — pick any mix to generate a Secretarial Practice paper with step-by-step answer keys.
175
Questions
16
Question groups
5
Question types
01
Select the correct answer from the options given below and rewrite the statement.
25 Q→02Give one word or phrase for the following sentence:
20 Q→03State whether the following statement is true or false.
21 Q→04Match the correct pairs
5 Q→05Explain the following term/concept in detail:
10 Q→06Answer in brife
7 Q→07Justify the following statement.
7 Q→08Answer the following questions
2 Q→09Find the odd one.
10 Q→10Complete the sentences.
15 Q→11Select the correct option from the bracket.
2 Q→12Answer in one sentence.
19 Q→13Do as instructed
3 Q→14Study the following case/situations and express your opinion.
13 Q→15Attempt the following.
1 Q→16Correct the underlined words and rewrite the following sentences.
15 Q→Sample Questions
Issue of Debentures questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
The contract between the company and Debenture trustees of companies is called as ___________
- ✓Debenture trust deed
- BLetter of offer
- CProspectus
Answer: A.
View full solution →A company that issues a prospectus or invites more than 500 persons to buy its debenture has to appoint ___________
- ARegister of companies
- BDebenture holders
- ✓Debenture trustees
Answer: C.
View full solution →The details of allotment of Debentures must be entered in ___________
- ✓Register of debenture
- BRegister of members
- CRegister of creditors
Answer: A.
View full solution →Debenture certificate must be issued within ___________ of allotment of debentures.
- A3 months
- ✓6 months
- C60 days
Answer: B.
View full solution →The authority has the power to issue debentures.
An institution that redresses grievances of debenture holders.
Period within which debenture certificate must be issued by a company.
The time period within which the procedure for allotment of debenture is to be completed from the date of receipt of applications.
The document contains terms and conditions agreed upon by the company and the Debenture trustees.
After allotment of Debentures names of Debenture holders is entered in the Register of Members.
Debentures certificate should issue within 6 months of allotment of debentures.
Debenture Trustees are appointed to protect shareholders.
The company has to create a charge on its assets when it issues secured debentures.
All secured debentures should be redeemed within 20 years from the date of their issue.
| Group ‘A’ | Group ‘B’ |
| (1) Trust Deed | (a) Owner |
| (2) Debenture Certificate | (b) Deed for debenture holders |
| (3) Secured Debenture | (c) Charge on company’s assets |
| (4) Redemption by annual installment | (d) Creditors of the company |
| (5) Debenture holders | (e) Signature of two directors |
| (f) Two coupons | |
| (g) Deed for depositors | |
| (h) No charge on the company’s assets | |
| (i) CARE | |
| (j) Credit rating |
| Group ‘A’ | Group ‘B’ |
| (1) Board of Directors | (a) Within 6 months after allotment |
| (2) Debentures | (b) No voting right |
| (3) Debenture holder | (c) Application of debentures |
| (4) CARE | (d) Interest |
| (5) Debenture Certificate | (e) Voting right |
| (f) Within 120 days after allotment | |
| (g) Credit rating agency | |
| (h) Dividend | |
| (i) SEBI | |
| (j) Creditors |
| Group ‘A’ | Group ‘B’ |
| (1) Charge on Asset | (a) Credit Rating |
| (2) Redeemable debenture | (b) Secured debenture |
| (3) Board of Directors | (c) 90 days |
| (4) CRISIL | (d) Power to issue debenture |
| (5) Debenture Certificate | (e) Unsecured Debenture |
| (f) Repaid on maturity | |
| (g) 6 months |
| Group ‘A’ | Group ‘B’ |
| (1) Debenture Trustees | (a) No voting rights |
| (2) Debenture | (b) ICRA |
| (3) Convertible debenture | (c) Security about Repayment |
| (4) Secured debenture | (d) CARE |
| (5) Debenture holder | (e) Equity Shares |
| (f) Borrowed capital | |
| (g) Protect Debenture holders |
Debenture Trust Deed
Charge on Assets
Debenture Trustee
Debenture Certificate
Secured debenture
Who are debentures trustees?
What is Debenture Trust Deed?
OR
Write a note on Debenture Trust Deed.
OR
Write a note on Debenture Trust Deed.
State any four provisions of the Companies act 2013 for the issue of debenture?
Who are Debenture Trustees? OR Explain the role of Debenture Trustees.OR Write a note on Debenture Trustees.
What are/Explain the requirement of SEBI for the issue of debentures?
A company can issue only certain types of debentures.
Debenture trustees are appointed by a company issuing debentures.
A company has to create a charge on its asset for issuing secured debenture.
Members, as well as debenture holders, can inspect the debenture trust deed.
Debenture Redemption Reserve Account is used for the redemption of debentures.
Explain briefly the procedure for the issue of debentures.
- Briefly explain the provisions of the Companies Act, 2013 for the issue of debentures.
OR
State the statutory provisions related to the issue of debentures.
Debenture Trustee, Trust deed, Shareholder.
Secured debenture, convertible debenture, Irredeemable debenture
Debenture Trustee, Court, NCLT
Debenture holders, Interest, Dividend
Debenture Certificate Trust Deed, share certificate
For public issue or rights issue of convertible debentures, as per SEBI, a company must obtain ___________
For public issue of debentures of ₹ 100 crores, minimum subscription should be ___________
Return on investment on debenture is called ___________
A company which issues prospectus or invites more than 500 persons to subscribe for its debentures, has to appoint ___________
To stop a company from incurring further liabilities, the Debenture trustee can approach ___________
(Issued within 6 months of allotment, Names of debenture holders, Secured debentures, Trust Deed, Debenture holders)
| Group ’A’ | Group ’B’ |
| (1) Board of Directors | (a) ……………………. |
| (2) ……………………. | (b) Interest |
| (3) Debenture holders | (c) …………………….. |
| (4) …………………….. | (d) Credit Rating Agency |
| (5) Debenture certificate | (e) ……………………….. |
(Debenture, Application of debenture, No Voting Rights, 6 months, CARE)
When should the company appoint a credit rating agency?
What is the minimum subscription that a company must collect for an issue of debentures of ₹ 100 crores?
Within what period should the debenture certificate be issued?
Name of the meeting in which approval for increasing the borrowing powers of the Board is passed.
Who has the authority to create charges on assets of a company?
Arrange in proper order :
(a) Hold Board Meeting for allotment
(b) Issue debenture certificate
(c) Receive application with money
Arrange in proper order :
(a) Issue debenture certificate
(b) Issue prospectus
(c) Open Bank Account
Arrange in proper order :
(a) Obtain Credit Rating
(b) Entry in register of debenture
(c) Receive application with money
Within what period should the company issue a Debenture certificate?
Is the proposed issue within the borrowing powers of the board?
What can be the maximum tenure of the debentures to be issued?
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:
As the company is offering debenture to its members, can such debentures have normal voting rights?
Explain the regulations governing the issue of different types of debentures.
To rate its debentures a company appoints underwrites.
The procedure for allotment of debentures should be completed within 90 days from the date of receipt of applications.
Debenture certificates are issued within 3 months of allotment of debentures.
Debenture Trustees redress the grievances of shareholders.
Return on investment on debentures is the dividend.
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