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Answer Posted / azam khan
Debenture is an instrument which is used for fundraising by
large companies from public/private financial
institutions.it is also called borrowed capital.the company
give some fixed rate of interest over these debenture to
the debenture holders.
Debenture are not secured by any physical asset or
colletaral.it is only backed by the creditworthness or
reputation of the company whom offered the debentures.
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