Question:
What is Redeemable Debenture?
What is Redeemable Debenture?
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Think “loan certificate with a maturity promise”—that’s a redeemable debenture.
Updated On: Sep 13, 2025
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Solution and Explanation
Step 1: Define clearly.
Unlike irredeemable debentures (not permitted in many jurisdictions), a \emph{redeemable} debenture carries a commitment to return principal on or before a stated maturity date.
Step 2: Redemption terms.
Repayment can be in lump sum, by instalments/draw of lots, by purchase in open market, or via conversion—at par or premium as agreed.
Final Answer: \[ \boxed{\text{Debenture repayable at/within a specified time as per issue terms}} \] % Quciktip
Unlike irredeemable debentures (not permitted in many jurisdictions), a \emph{redeemable} debenture carries a commitment to return principal on or before a stated maturity date.
Step 2: Redemption terms.
Repayment can be in lump sum, by instalments/draw of lots, by purchase in open market, or via conversion—at par or premium as agreed.
Final Answer: \[ \boxed{\text{Debenture repayable at/within a specified time as per issue terms}} \] % Quciktip
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