Issue and Redemption of Debentures · Class 12 · CBSE · Commerce Accountancy
What is the maximum limit of discount on the issue of debentures as per the Companies Act, 2013?
Practice question from Issue and Redemption of Debentures (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-9ABABF
What is the maximum limit of discount on the issue of debentures as per the Companies Act, 2013?
- A.10% of the nominal value
- B.15% of the nominal value
- C.There is no legal limit prescribed by the Companies Act, 2013Correct answer
- D.5% of the nominal value
Solution
While earlier guidelines (like those of SEBI) imposed restrictions, the Companies Act, 2013 does not prescribe any specific maximum limit on the rate or amount of discount at which debentures can be issued.
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