__________ 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.
__________ 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.
Solution
✅ Correct Option: 2
Debentures classified on the basis of security are secured or unsecured. Secured (mortgage) debentures carry a fixed or floating charge on the company's assets, which can be realised to repay holders if the company defaults.
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2025: 29 May Shift 2