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A debenture is a bond issued with no collateral.Both corporations and governments make use of debentures. Examples of debentures are Treasury bonds and Treasury bills.

Debentures are a type of Debt Instrument, similar to a Bond, that companies issue in order to raise capital.Companies pay investors interest for the term of the Debenture. At the end of the lending period, issuing companies usually offer the choice of converting the Debentures into Shares.

Debentures generally have a more specific purpose than other bonds. While both are used to raise capital, debentures typically are issued to raise capital to meet the expenses of an upcoming project or to pay for a planned expansion in business.

There is no proper instrument for transfer of debenture. There are no separate provisions contained in Table A of Companies Act, 1956. Section 108 provides proper instrument of transfer to be executed for effecting transfer of shares or debentures. However Form 7B contains only to transfer shares only not debentures.

Debentures are a type of Debt Instrument, similar to a Bond, that companies issue in order to raise capital.Companies pay investors interest for the term of the Debenture. At the end of the lending period, issuing companies usually offer the choice of converting the Debentures into Shares.

The procedure of issuing debentures by a company is similar to the one followed while issuing equity stocks. The company starts by releasing a prospectus declaring the debenture issuance.The company can issue debentures at a par, at a premium or at a discount as explained below.

Companies issue debentures in the secondary market for their long-term capital needs. However this debt instrument is not backed by collateral of company's assets.