Question

Debentures which are transferred by executing transfer deed are: 
 

• A. Registered Debentures
• B. Bearer Debentures
• C. Naked Debentures
• D. Convertible Debentures

Hint:

In a Registered Debenture, interest and principal are only paid to the person whose name appears in the company's books.

Answer 1

The Correct Option is A

Concept: The legal transfer of financial instruments depends on whether the issuer maintains a centralized database of ownership.

Step 1: Identifying the role of the Transfer Deed. A transfer deed is required when the name of the owner is recorded in the company's Register of Debenture Holders. For the company to recognize a new owner, the previous owner must sign a transfer deed.

Step 2: Matching the type to the definition.
• Registered Debentures: Always require a deed for valid transfer.
• Bearer Debentures: Transferred by delivery.
• Naked Debentures: Refers to lack of security, not transfer method.
• Convertible Debentures: Refers to the right to convert into shares. Therefore, the correct answer is Registered Debentures.