12 Questions
What is the primary reason companies prefer issuing debentures to raise funds?
Longer repayment period
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
Which regulation governs the issue of secured debentures?
Companies (Share Capital and Debentures) Rules, 2014
What is the primary purpose of the SEBI (Issues and Listing of Debt Securities) Regulations, 2008?
To cover provisions for issue and listing of debentures not convertible into equity shares
Which of the following is not a provision that a company must fulfill when issuing debentures?
Declaring dividends to shareholders
What is the minimum period of default in repaying debt securities that would prohibit a company from accessing the securities market?
6 months
Which of the following provisions requires a company to follow the same disclosure norms as applicable to equity shares?
SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009
What is the primary purpose of the RBI Guidelines in relation to debentures?
To provide guidelines for banks raising capital through non-equity instruments
What is the role of the Board of Directors in relation to the issue of debentures?
To use their borrowing powers up to the limit permitted by the Articles of Association
What is the purpose of creating a Debenture Redemption Reserve?
To comply with the regulatory requirements
What is the role of Debenture Trustees in relation to the issue of debentures?
To approach NCLT in case of non-compliance
What is the limitation on the borrowing powers of the Board of Directors in relation to the issue of debentures?
Limitation by the Articles of Association
Test your understanding of the conditions under which a company can make a public issue of debentures. Learn about the rules and regulations set by SEBI and the requirements for companies to access the securities market.
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