{"id":7241,"date":"2021-10-01T11:44:54","date_gmt":"2021-10-01T06:14:54","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=7241"},"modified":"2025-10-08T13:30:02","modified_gmt":"2025-10-08T08:00:02","slug":"what-is-debenture","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/what-is-debenture\/","title":{"rendered":"What is Debenture? | Meaning and Definition"},"content":{"rendered":"\n

What is Debenture?<\/strong><\/h2>\n\n\n\n

Meaning<\/strong> of Debenture<\/h3>\n\n\n\n

Debentures are one of the principal sources of raising borrowed capital to meet long and medium-term financial needs. Over the years debentures have occupied a significant position in the financial structure of the companies.<\/p>\n\n\n\n

The term debenture has come from the Latin word \u2018debere\u2019 which means to \u2018owe\u2019.<\/strong><\/p>\n\n\n\n

The term debenture has not been defined clearly under Companies Act. Sec 2(30) of the Companies Act 2013, only states that, \u2018the word debenture includes debenture stock, bonds and any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not<\/strong>\u2019.<\/p>\n\n\n\n

Under the existing definition, debenture includes debenture stock. Debenture means a document that either creates or acknowledges debt. Ordinarily, debenture constitutes a charge on some property of company, but there may be a debenture without any such charge.<\/p>\n\n\n\n

\"What
What is Debenture? <\/figcaption><\/figure>\n\n\n\n