Types of Debentures Debentures can be categorized on the following basis: A. On the basis of Security: Secured Debentures : Debentures that are issued against a security/collateral are called secured debentures . In other words, a charge is made against the assets of the issuing company. Unsecured Debentures : Debentures which are issued without any charge against the issuing company's assets are called unsecured debentures . B. On the basis of Tenure: Redeemable Debentures : Such debentures ... Debentures are debt instruments that companies and governments use to raise capital from investors. They offer fixed interest payments, no voting rights, and various types based on security, convertibility, term, and registration. What are debentures ? Understand debenture meaning , types, features, risks & how they differ from bonds and shares. Learn more with Kotak Securities. What is a Debenture? A debenture is a type of long-term debt instrument that a company issues to borrow money from investors. In return, the company promises to pay a fixed rate of interest at regular intervals and return the principal amount on maturity. In simpler words, when you buy a debenture, you’re lending money to the company — and in exchange, you earn interest (also known as a coupon). Debentures are similar to bonds but are typically issued by corporates rather than governments.
