Question

What are different types of debentures from the view point of registration
A. Convertible
B. Bearer 
C. Redeemable 
D. Secured 
E. Registered
Choose the correct answer from the options given below:

• A. A & E only
• B. B & C only
• C. B & E only
• D. C & D only

Answer 1

The Correct Option is C

Step 1: Identify the Classification Basis

The question asks for types of debentures from the viewpoint of registration. This means we need to focus on whether the debentures are recorded in the company’s register of debenture holders or not.

Step 2: Evaluate Each Option

Let’s check each option:

• Convertible (A): This is about convertibility into shares, not registration. Irrelevant.
• Bearer (B): These debentures are not registered; ownership is determined by possession. This is a valid type based on registration.
• Redeemable (C): This is about repayment terms, not registration. Irrelevant.
• Secured (D): This is about security backing, not registration. Irrelevant.
• Registered (E): These debentures are recorded in the company’s register, making this a valid type based on registration.

Step 3: Determine the Correct Types

From the viewpoint of registration, the two types are:

• Registered Debentures (E): Recorded in the company’s register.
• Bearer Debentures (B): Not recorded in the register; transferable by delivery.

Step 4: Match with the Given Options

The correct types are B (Bearer) and E (Registered). Checking the options:

• Option 1: A & E only
• Option 2: B & C only
• Option 3: B & E only
• Option 4: C & D only

Option 3 (B & E) matches our conclusion.

Final Answer

The correct option is Option 3: B & E only.