Question

Debentures which are transferred by executing transfer deed are: 
 

• A. Registered Debentures
• B. Bearer Debentures
• C. Naked Debentures
• D. Convertible Debentures

Hint:

In a Registered Debenture, interest and principal are only paid to the person whose name appears in the company's books.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Registered debentures are those whose details are recorded in the company's Register of Debenture Holders.
Step 2: Detailed Explanation:
Since the company keeps a formal record of ownership, any change in that ownership must be formally communicated to and accepted by the company. This process requires a legal document called a "Transfer Deed" to be signed by both the transferor and the transferee. Only then does the company update its records and the new holder becomes the legal owner in the eyes of the company.
Step 3: Final Answer:
Registered Debentures are transferred via a transfer deed.