21(Debenture Redemption Reserve) Flashcards
1
Q
What is a debenture
A
A tool to raise money from public by giving them bonds.
2
Q
WHat is this new Debenture Redemption Reserve
A
Redemtion basically means getting back the money after the time period is reached.
Now as per Indian Companies Act of 1956 the bond issuing company has to put 25% of redemption money to this fund.
3
Q
What is the news now
A
Govt to boost the economy has removed this cap of 25% from the listed companies,NBFC,Housing Finance Companies.
