Debentures

A debenture is an instrument executed by the company under its common seal acknowledging indebtedness to some person or entity to secure the funds. Debentures provide long-term funding for a company in the form of debt. Debentures can be classified into secured debentures or un-secured debentures.  Debentures can usually be issued by a company after obtaining Certificate of Commencement of Business, if permitted by the Articles of Association of the Company.

 

 

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