What is Debenture?

A debenture is defined as a certificate of agreement of loans which is given under the company's stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of interest rates) and the principal amount whenever the debenture matures. Debenture holders have no voting rights.

What is Participating Debenture?

Participating debentures are entitled to receive part of the company's profit in addition to the fixed interest.

Is Participating Debenture for me?

If you are expecting a continues flow of income and at the same time willing to get a share of the profit and are not too concerned about the growth of your investment, then you may consider this type of investment.


How risky are Participating Debentures?

A debenture is not secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital. Like other types of bonds, debentures are documented in an indenture.


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