Answer in one sentence:

1. Who are debenture holders ?
Ans: Debenture holders are the creditors of the company.

2. What do debenture holders receive as return on investment ?
Ans: Debenture holders receive fixed rate of interest as per quantum as return on investment.

3. Whom does the company appoint to protect the interest of debentureholders ?
Ans: To protect the interest of debenture holders, the company appoints Debenture Trustees.

4. Within what period should secured debentures be redeemed ?
Ans: Secured debentures must be redeemed within 10 years from the date of allotment.

5. Name the document which is an agreement between the debenture trustee and company.
Ans : Debenture Trust Deed is an agreement between the debenture trustee and the company.

6. Who has the authority to create charge on assets of a company ?
Ans: Debenture Trustees has the authority to create charge on assets of a company.

7. Name the meeting in which approval for increasing the borrowing powers of Board of
directors is passed.
Ans: In Extra-Ordinary General Meeting the approval for increasing the borrowing powers of the board of directors is passed.

8. Within what period should the debenture certificate be issued ?
Ans: Within 6 months the debenture certificate should be issued

9. What is the minimum subscription that a company must collect for an issue of debentures
of ` 100 crores ?
Ans: The minimum subscription that a company must collect for an issue of debentures of Rs.100 crores is 75% of the base issue size.

10. When should a company appoint a credit rating agency ?
Ans: A company should appoint a credit rating agency at the time of Public Issue or Rights Issue.