Question:
Explain redemption of debentures by draw of lots.
Explain redemption of debentures by draw of lots.
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Draw of lots is used when debentures are redeemed in instalments.
Updated On: Feb 16, 2026
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Solution and Explanation
Under this method, debentures are redeemed in instalments over a period of time.
A specified number of debentures are selected by lottery (draw of lots) each year and are redeemed at par or at a predetermined price.
This method ensures fair and gradual repayment of debentures.
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