13 January 2011
Dear Experts, An pulic(unlisted)company,newly incorporated wishes to issue debentures. The management wants to know: 1) what will be the cost to raise debenture for Rs. 10 cr ? 2) Guidelines for the same.
Pls provide the above details with the relevant site.
14 January 2011
Debenture is one type of loan under provision of sec 372A.Its a Guarantee given by company for the secured return of the loan amount. The board of Director in a meeting can issue debentures. To my knowledge u dont hav to incur any fixed commission to raise debenture for any amount. U can issue debentures in the same process of issue of equity shares or preference shares, but in case of debentures u have to appoint a trustee for securing the loan amount as provided under provision of sec 117 to sec 123 of companies act 1956. After issuing debentures u hav to file form 8 for registering it as charge under provision of sec 124 to sec 145. After Satisfaction u hav to file form 17.
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