Match List-I with List-II
List-I List-II (A) These debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default. (I) Bearer Debentures (B) These debentures are those which are payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company. (II) Zero Coupon Rate Debentures (C) These debentures do not carry a specific rate of interest. (III) Redeemable Debentures (D) These debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures interest on the debentures that is paid to a person who produces the interest coupon attached to such debentures. (IV) Secured Debentures
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) These debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default. | (I) Bearer Debentures |
| (B) These debentures are those which are payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company. | (II) Zero Coupon Rate Debentures |
| (C) These debentures do not carry a specific rate of interest. | (III) Redeemable Debentures |
| (D) These debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures interest on the debentures that is paid to a person who produces the interest coupon attached to such debentures. | (IV) Secured Debentures |
Choose the correct answer from the options given below:
Solution
Looking at each description in List-I and identifying the correct type of debenture:
(A) Charge on assets for payment in case of default
This defines Secured Debentures where the company creates a charge on its assets as security. In case of non-payment, debenture holders have a claim on these specific assets.
Match: (A) → (IV)
(B) Payable on expiry of specific period in lump sum or installments
This defines Redeemable Debentures which are repaid by the company either at maturity (lump sum) or in installments over the company's lifetime. The redemption timeline is predetermined.
Match: (B) → (III)
(C) Do not carry a specific rate of interest
This defines Zero Coupon Rate Debentures which are issued at a discount to face value and redeemed at face value. The difference between issue price and redemption value represents the return to investors, not periodic interest.
Match: (C) → (II)
(D) Transferred by delivery, no record maintained, interest paid to coupon holder
This defines Bearer Debentures which are negotiable instruments. The company doesn't maintain ownership records and pays interest to whoever presents the interest coupon (the bearer), making them highly transferable.
Match: (D) → (I)
Final Matching: (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
Correct Answer: Option 2
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