Under Section 71 Companies Act 2013, a 'debenture' is defined as INCLUDING (but not exhaustively):
Answer & Solution
Correct answer: C.
1. Section 2(30) Companies Act 2013: 'debenture' INCLUDES debenture stock, bonds or any other instrument of a company evidencing a DEBT, whether constituting a charge on the assets of the company or not.
2. The definition is INCLUSIVE — covering both SECURED and UNSECURED debentures, CONVERTIBLE or NON-CONVERTIBLE.
3. Section 71 regulates the issue: NCDs (non-convertible) need debenture redemption reserve under SEBI rules; convertible debentures need Special Resolution.
4. Section 71(13) confers right on debenture-holders to appeal to NCLT for redress on default.
5. Hence option A is correct.
_Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 2(30) read with Section 71_
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