Advisory Services
Audit
Consulting
ESG Advisory
RBI Registration
SEBI Registration
IRDA Registration
FEMA Advisory
Compliances
IBC Services
VCFO Services
Growing
Developing
ME-1
ME-2
EU-1
EU-2
SE
Others
Select Your Location
Before discussing what Bearer Debenture or Unregistered Debentures is, it is important to understand Debentures and the key points to be kept in mind before utilizing them. Debentures are the debt securities issued by a company with the intention to pay interest in lieu of the money borrowed for a predefined period. These are usually issued by the Blue chip (High rated Companies). On the basis of convertibility, security, redemption, priority, status, etc.,
Table of Contents
The list is just endless, and therefore naturally the reason why a good understanding of Debentures is vital in a fruitful investment.
The compliance with respect to Non-Convertible Debentures are-
Now we will discuss the Bearer Debentures and what are the features of Bearer Debentures and how it is different from the other Debentures.
Bearer debentures are the Debentures that can be transferred by mere delivery and are payable to the bearer of the instrument. i.e. the person holding the instrument. Records of Bearer Debentures are not maintained in the register of debenture holders, and registration of transfer is not necessary. Bearer Debentures are also known as Unregistered Debentures.
The salient features of Bearer Debentures are as follows-
Bearer Debentures are termed as Unregistered Debentures as they can be transferred by mere delivery. However, in the case of Registered Debentures, the transfer cannot be done by mere delivery and all the required details are recorded in the register of the Debenture Holders.
These details include-
Bearer Debentures can be transferred by mere delivery and are payable to the bearer of the instrument. i.e. the person holding the instrument.
Records of Bearer Debentures are not maintained in the register of debenture holders, and registration of transfer is not necessary.
With the purchasing of the Bearer debentures, various benefits are attached. However, there are also certain risks involved which cannot be ignored. These risks involve:
The Bearer debentures are classified on the basis of transferability. The Bearer Debentures are useful for investors who wish to retain invisibility. Bearer debentures are a negotiable instrument with a particular maturity period and coupon interest rate.
Also, Read: Government Removed the Debenture Redemption Reserve Requirements for Listed Companies, NBFCs and HFCs.
Priyanka Bajpayee has done Masters in International Business Law and well versed in content writing covering the area of legal and finance. Also, she has practical experience of almost 1.5 years in Legal compliance and secretarial work.
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
Are you human?: 3 + 7 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
On 26th August 2022, vide circular number SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2022/112, guidelines were issued by the Secu...
31 Aug, 2022
An EGM, or extraordinary general meeting, is a gathering of members of an organisation, shareholders of a business,...
25 Apr, 2023
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!