Question:
Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders are called:
Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders are called:
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Bearer debentures = no registration, freely transferable. Registered debentures = record maintained, transfer via deed.
Updated On: Jul 19, 2025
- Secured Debentures
- Redeemable Debentures
- Registered Debentures
- Bearer Debentures
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The Correct Option is D
Solution and Explanation
Debentures are classified into different types based on their characteristics.
Bearer Debentures are those which can be transferred simply by delivery without any registration or endorsement.
The company does not keep a record of the names of the holders of bearer debentures.
They are like negotiable instruments and are payable to the person who presents them.
In contrast, Registered Debentures require the name of the holder to be recorded by the company and can only be transferred by executing a transfer deed.
Hence, debentures which are freely transferable by delivery and not recorded in the company's books are called Bearer Debentures.
Bearer Debentures are those which can be transferred simply by delivery without any registration or endorsement.
The company does not keep a record of the names of the holders of bearer debentures.
They are like negotiable instruments and are payable to the person who presents them.
In contrast, Registered Debentures require the name of the holder to be recorded by the company and can only be transferred by executing a transfer deed.
Hence, debentures which are freely transferable by delivery and not recorded in the company's books are called Bearer Debentures.
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