Festures of debenture markets , instrument in debenture market

2. Viva College of Arts Commerce And Science
From Class: SYBMS
Finance Group
Subject: Financial Services
Topic:Debenture
Market in India.

3. OBJECTIVE
 To know about the Debenture Market
in India.
 To know the participants of Debenture
Market.
 Functions of Debenture Market.
 How Debenture bonds are traded.

4. INTRODUTON TO
DEBENTURE MARKET
 A debenture is one of the capital
market instruments which is used to
raise medium or long term funds from
public. A debenture is essentially a
debt instrument that acknowledges a
loan to the company and is executed
under the common seal of the
company.

5. Debenture - What is a
debenture?
 Definition:
A debenture is a medium to long-term
debt format that is used by large
companies to borrow money.
Debentures are the most common form
of long-term loans that can be taken
by a company.

6. Participants and Product:

7. Regulatory Bodies
As debt market trade both government
and corporate debt instruments, we have
following two regulators
1. RBI : It regulates and also facilitates the
government bonds and other securities
on behalf of governments
2. SEBI: It regulates corporate bonds,
both PSU (Public sector undertaking)
and private sector.

8. Types of Debentures :
 1. REDEEMABLE AND
IRREDEEMABLE (PERPETUAL)
DEBENTURES
 2. CONVERTIBLE AND NON-
CONVERTIBLE DEBENTURES
 3. FULLY AND PARTLY
CONVERTIBLE DEBENTURES

9. Functions of debenture market
 REGISTERED UNREGISTERED
DEBENTURES (BEARER)
DEBENTURE
In the case of registered debentures, the
name, address, and other holding
details are registered with the issuing
company and whenever such
debenture is transferred by the holder;
it has to be informed to the issuing
company for updating in its records.

10. Functions of debenture market
 Type of Interest Rates
 FIXED AND FLOATING RATE
DEBENTURES
Fixed rate debentures have fixed interest
rate over the life of the debentures.
Contrarily, the floating rate debentures
have the floating rate of interest which is
dependent on some benchmark rate say
LIBOR etc.

11. Issue of Debentures
Issue of Debenture takes various forms
which are as under:
 1. Debentures issued for cash
 2. Debentures issued for consideration
other than cash
 3. Debentures issued as collateral
security
 Further, debentures may be issued
 4.at par(ii) at premium(iii) at discount

12. Conclusion:
Debentures are the most sought
financial instruments for both
investment or for speculation.
Debentures securities are contract
between borrower and lender lends
money to borrow on predefined rate of
interest called as coupon rate.