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Debenture 

A debenture is an unsecured corporate bond without being backed by collateral. Debentures are long-term debt instrument and are backed only by the reputation of the debenture issuer. The debenture is issued for the purpose of raising funds. In case of a bankruptcy/insolvency debentures are treated as general creditors. Certificates stating that a company is liable to pay a specific amount (and interest) to the debenture holder are issued.

According to the Companies Act 2006 debenture includes debenture stock, bonds and any other securities of a company, whether or not constituting a charge on the assets of the company.

A company must register an allotment of debentures as soon as practicable and in any event within two months after the date of the allotment.  The register of debenture holders must be kept at the company's registered office or it's SAIL address.

MSP Secretaries Limited can offer expert, professional advice on the allotment of debentures and the maintainance of the register of debenture holders.