Issue of debentures

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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.

Thnx in advance.

CS Taher

CS Taher (Expert)
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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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