tag:blogger.com,1999:blog-4868456476955927101.post2609365747806047124..comments2023-10-20T09:10:17.597+05:30Comments on CorporateCases: Perpetual or Irredeemable Debentures under Companies ActVik Mohapatrahttp://www.blogger.com/profile/02198855299879634069noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-4868456476955927101.post-9801707391060530512022-01-21T16:08:11.189+05:302022-01-21T16:08:11.189+05:30It is well explained however I have doubt that if ...It is well explained however I have doubt that if a company wishes to issue perpetual unsecured Non-convertible Debenture, one should check the provisions of Companies (Acceptance of Deposits) Rules, 2014 which are as under "Rule 2(1)(c)(ixa) Companies (Acceptance of Deposits) Rules, 2014 – Deposit excludes any amount raised by issue of non-convertible debenture not constituting a charge (unsecured) on the assets of the company and listed on a recognized stock exchange. <br />Hence, the company can issue Perpetual Unsecured Debenture which shall be listed on recognised stock exchange.<br /><br />Therefore Unsecured NCDs need to be listed for not falling under the definition of Deposit <br />Anonymoushttps://www.blogger.com/profile/02126674639917081734noreply@blogger.comtag:blogger.com,1999:blog-4868456476955927101.post-21581082300757993692020-10-12T16:19:01.006+05:302020-10-12T16:19:01.006+05:30👌👌Anonymoushttps://www.blogger.com/profile/15941181025325164300noreply@blogger.comtag:blogger.com,1999:blog-4868456476955927101.post-81767660281541708812020-05-15T16:25:51.881+05:302020-05-15T16:25:51.881+05:30In the definition of "deposit", certain ...In the definition of "deposit", certain types of debentures are excluded. Refer Rule 2(1)(c)(ix) & (ixa) of the Companies (Acceptance of Deposits) Rules, 2014.<br /><br />Clause (ix) states about issue of certain secured debentures and Clause (ixa) states about issue of unsecured non-convertible debenture by the listed company, being excluded from the definition of deposit.<br /><br />With reference to clause (ixa), since the deposit restrictions are not applicable here, it leaves a possibility that the listed companies may be able to issue of irredeemable unsecured non-convertible debenture. Will have to further check if under any SEBI regulations, it is restricted. I could not find any.<br /><br />Such issue of irredeemable debentures is very rare as it is not very attractive proposition from investor's point of view.Priyankanoreply@blogger.comtag:blogger.com,1999:blog-4868456476955927101.post-63021521077593225712020-05-15T14:01:14.147+05:302020-05-15T14:01:14.147+05:30Hi if you will refer to deposit definition provide...Hi if you will refer to deposit definition provided in rule 3, you may think to modify it.Manav Harivyasihttps://www.blogger.com/profile/09323416555120060982noreply@blogger.comtag:blogger.com,1999:blog-4868456476955927101.post-38892094892557254902020-03-05T07:00:12.686+05:302020-03-05T07:00:12.686+05:30Yes, under section 55(1) the companies limited by ...Yes, under section 55(1) the companies limited by shares are not allowed to issue any preference shares which are irredeemable.<br /><br />But neither under section 71 of the Companies Act, 2013 nor under rule 18 of the Companies (Share Capital and Debentures) Rules, 2014, there are any clear restriction on issue of unsecured irredeemable debentures.<br /><br />Hence, it is open to interpretation that such issue is indirectly permitted.Nimeshnoreply@blogger.comtag:blogger.com,1999:blog-4868456476955927101.post-66181375665124814712020-03-04T17:53:45.088+05:302020-03-04T17:53:45.088+05:30Well explained.. But I personally feel, when irred...Well explained.. But I personally feel, when irredeemable preference shares are not allowed now, which is supposed to be owners' capital, how can borrowed capital be allowed to be issued as irredeemable ?debenturesAnuradhahttps://www.blogger.com/profile/15061051092162759092noreply@blogger.comtag:blogger.com,1999:blog-4868456476955927101.post-49198933322745110882019-05-28T11:53:51.816+05:302019-05-28T11:53:51.816+05:30Thanks
Thanks<br /><br />Anonymoushttps://www.blogger.com/profile/06804101630859466391noreply@blogger.comtag:blogger.com,1999:blog-4868456476955927101.post-27127978498273983922018-08-19T19:14:21.568+05:302018-08-19T19:14:21.568+05:30very well explained. thank you for the information...very well explained. thank you for the information on perpetual debenture. helpful in clearing some doubts.Venkata Ramana Raonoreply@blogger.com