Podcast
Questions and Answers
What is the primary reason companies prefer issuing debentures to raise funds?
What is the primary reason companies prefer issuing debentures to raise funds?
- Flexibility in securities market
- Longer repayment period (correct)
- Ease of issuing process
- Lower interest rates
What is a necessary condition for a company to make a public issue of debentures?
What is a necessary condition for a company to make a public issue of debentures?
- The company has not been prohibited from accessing the securities market by SEBI (correct)
- The company has a good credit rating
- The company has a large cash reserve
- The company has issued equity shares in the past
Which regulation governs the issue of secured debentures?
Which regulation governs the issue of secured debentures?
- Companies Act, 2013
- RBI Guidelines
- Companies (Share Capital and Debentures) Rules, 2014 (correct)
- SEBI (Issues and Listing of Debt Securities) Regulations, 2008
What is the primary purpose of the SEBI (Issues and Listing of Debt Securities) Regulations, 2008?
What is the primary purpose of the SEBI (Issues and Listing of Debt Securities) Regulations, 2008?
Which of the following is not a provision that a company must fulfill when issuing debentures?
Which of the following is not a provision that a company must fulfill when issuing debentures?
What is the minimum period of default in repaying debt securities that would prohibit a company from accessing the securities market?
What is the minimum period of default in repaying debt securities that would prohibit a company from accessing the securities market?
Which of the following provisions requires a company to follow the same disclosure norms as applicable to equity shares?
Which of the following provisions requires a company to follow the same disclosure norms as applicable to equity shares?
What is the primary purpose of the RBI Guidelines in relation to debentures?
What is the primary purpose of the RBI Guidelines in relation to debentures?
What is the role of the Board of Directors in relation to the issue of debentures?
What is the role of the Board of Directors in relation to the issue of debentures?
What is the purpose of creating a Debenture Redemption Reserve?
What is the purpose of creating a Debenture Redemption Reserve?
What is the role of Debenture Trustees in relation to the issue of debentures?
What is the role of Debenture Trustees in relation to the issue of debentures?
What is the limitation on the borrowing powers of the Board of Directors in relation to the issue of debentures?
What is the limitation on the borrowing powers of the Board of Directors in relation to the issue of debentures?
