Redemption of Debenture

This query is : Resolved

Narendra Verma (Querist)
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07 May 2010 hi,
A public co. failed to redeem its debentures which were due in 2009. Now co. wants to redeem the same in the financial year 2010. pls explain the procedure involve and compliances.

Rasesh

Rasesh (Expert)
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07 May 2010 Assuming that the debentures are issues to one person / institution and that they have not objected / filed any legal case against the company for late redemption of the debentures, the procedure is as under:

1) Simply issue a letter to the debenture holder stating that their debentures are redeemed.
2) Pay the Principal and interest upto the date of redemption.
3) If any DRR was created, transfer it to GR.