Question:

Debentures on which a company does not give any undertaking for the repayment of money borrowed are called:

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Bearer debentures are like cash instruments — whoever holds them can claim interest, but there's no registry in company books.
Updated On: Jul 14, 2025
  • Bearer Debentures
  • Secured Debentures
  • Perpetual Debentures
  • Registered Debentures
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The Correct Option is A

Solution and Explanation

Bearer debentures are unregistered debt instruments. They are transferable merely by delivery, and the company does not maintain any record of the bearer. Therefore, the company is not directly responsible to the holder for repayment — hence, no undertaking for repayment is issued.
Final Answer: Bearer Debentures
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