Which of the following statements about debentures is FALSE?(A) Debenture is a part of owned capital.(B) Debentures cannot be converted into shares.(C) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.(D) Debentures cannot be issued at a premium.Choose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (B) and (C) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Let's check the veracity of each statement:(A) Debenture is a loan instrument, hence it is borrowed capital, not owned capital False.(B) Convertible debentures can be converted into equity shares False.(C) Redeemable debentures are paid back after a specific duration True.(D) Debentures can definitely be issued at a premium False.Since statements (A), (B), and (D) are false, the correct option is (A), (B) and (D) only.