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With reference to the Non-Convertible Debenture, consider the following statements:
  1. It is a long-term financial instrument which acknowledges a debt obligation towards the issuer.
  2. It gives a higher rate of return compared to convertible debentures.
Which of the statements given above is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the Non-Convertible Debenture, consider the followin...
Recently, the Securities and Exchange Board of India (Sebi) has proposed a review of corporate governance norms for a high-value debt-listed entity.
  • An entity which has listed its non-convertible debt securities on a recognised stock exchange and has an outstanding principal value of listed non-convertible debt securities of Rs. 500 Crore and above will be categorized as a ‘High-value debt listed entity’
  • 'Non-Convertible Debentures (securities) are long-term financial instruments which acknowledge a debt obligation towards the issuer.
  • The debentures which can't be converted into shares or equities are called non-convertible debentures (or NCDs).
  • To compensate for this drawback of non-convertibility, lenders are usually given a higher rate of return compared to convertible debentures.
  • In India, usually, these have to be issued with a minimum maturity of 90 days.
Hence both statements are correct.
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With reference to the Non-Convertible Debenture, consider the following statements: It is a long-term financial instrument which acknowledges a debt obligation towards the issuer. It gives a higher rate of return compared to convertible debentures.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the Non-Convertible Debenture, consider the following statements: It is a long-term financial instrument which acknowledges a debt obligation towards the issuer. It gives a higher rate of return compared to convertible debentures.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Non-Convertible Debenture, consider the following statements: It is a long-term financial instrument which acknowledges a debt obligation towards the issuer. It gives a higher rate of return compared to convertible debentures.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Non-Convertible Debenture, consider the following statements: It is a long-term financial instrument which acknowledges a debt obligation towards the issuer. It gives a higher rate of return compared to convertible debentures.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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