Question

According to Companies (Share Capital and Debenture) Rules, 2014, by which percentage of the amount of debentures will have to create Debenture Redemption Reserve (DRR), before the commencement of redemption of debentures?

• A. 25%
• B. 50%
• C. 100%
• D. Zero

Hint:

Always remember: As per Companies Act 2014, DRR = 25% of debentures before redemption.

Answer 1

The Correct Option is A

Step 1: Recall Companies Act rules.
According to the Companies (Share Capital and Debenture) Rules, 2014, companies issuing debentures must create a Debenture Redemption Reserve (DRR).
Step 2: Required percentage.
The law requires companies to transfer at least 25% of the value of debentures issued into the DRR before redemption begins.
Step 3: Conclude.
Thus, the percentage is 25%.
Final Answer: \[ \boxed{25%} \]