Eligibility for issue of debentures

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2013 Dear All,

can anyone provide me the minimum net worth required for a listed company to issue of covertible debentures.

It's very urgent please let me know.

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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05 February 2013 Under the Companies (Acceptance of Deposit) Rules, 1975 “any amount
raised by issue of debentures (including convertible debentures) secured by the
mortgage of any immovable property of the company and that the market value
of the immovable property secured is higher than the amount of debentures
issued” is not considered to be a DEPOSIT.