CA Foundation Exam  >  CA Foundation Questions  >  Which of the following is not a characteristi... Start Learning for Free
Which of the following is not a characteristic of Bearer Debentures?
  • a)
    They are treated as negotiable instruments
  • b)
    Their transfer requires a deed of transfer
  • c)
    They are transferable by mere delivery
  • d)
    The interest on it is paid to the holder irrespective of identity
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following is not a characteristic of Bearer Debentures?a)...
Characteristics of Bearer Debentures:
1. They are treated as negotiable instruments.
2. They are transferable by mere delivery.
3. The interest on it is paid to the holder irrespective of identity.
Explanation:
Bearer debentures are a type of debenture where the ownership is not recorded in the company's register. Instead, the debenture is transferred by physical possession or delivery. Let's examine each characteristic to determine which one is not applicable to bearer debentures:
1. They are treated as negotiable instruments: Bearer debentures are considered negotiable instruments, meaning they can be transferred from one party to another by delivery or endorsement. This characteristic allows for ease of transfer and liquidity.
2. They are transferable by mere delivery: Bearer debentures are transferable by the mere delivery of the physical debenture certificate. No formal deed of transfer or registration is required. This makes the transfer process simpler and less bureaucratic.
3. The interest on it is paid to the holder irrespective of identity: Bearer debentures entitle the holder to receive interest payments from the issuing company. The identity of the holder is not relevant for the payment of interest. This characteristic ensures that the holder of the debenture receives the interest payment regardless of who currently possesses the debenture.
Conclusion:
From the given characteristics, option B is not a characteristic of bearer debentures. The transfer of bearer debentures does not require a deed of transfer. Instead, they are transferred by mere delivery.
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer?
Question Description
Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instrumentsb)Their transfer requires a deed of transferc)They are transferable by mere deliveryd)The interest on it is paid to the holder irrespective of identityCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev