Everything You need to know about Debentures - In simplest | Finlight

Everything You need to know about Debentures -

In simplest language, a Debenture is a document given by a company as evidence of debt to the holder. Debentures are part of debt capital.

The face value of Debenture is Normally higher than that of shares. It is ₹100 or in multiples of ₹100.

A fixed rate of interest is agreed and paid periodically. It must be paid by company irrespective of the fact, Whether the company makes profit or not.

Debentureholder did not have voting rights as they are creditors of company.

Like shareholders, debentureholder also get 'debenture certificate'.

Debentures can also get converted into equity shares after specific period of time if debentureholder wish to do it.