obligations

Types of debenture 
Obligations are classified into several types. These are redeemable,
Irrevocable, perpetual, non convertible convertible, totally, partly,
Secured, mortgaged, unsecured, naked, first mortgaged, second
Mortgaged, bearer, fixed, variable interest rate, coupon rate, zero coupon, insured
Subscription notes, can be called, with put option, etc.
Types of obligations Obligations are classified into different types based
In its mandate, redemption, mode of redemption, convertibility, security,
Transferability, rate of interest, coupon rate, etc. The following are the
Various types of obligations vis-a-vis the basis of the classification.

Redemption / Tenure
Redemptive and irremediable (perpetual) Obligations: redeemable
Obligations have a specific date of redemption on the certificate. the
The company is legally obliged to pay the principal amount of the bond issue
Holders on that date. On the other hand, irredeemable obligations, also
Known as perpetual instruments, do not bear any repayment date. East
Means that there is no specific time to repayment of these obligations.
They are amortized in the liquidation of the company or when the
Company chooses to pay to retire to reduce its liability for the problems of due
Notice to the holders of the obligations in advance.

convertibility
Convertible and non-convertible debentures: convertible debentures
Holders have the option of converting their securities into equity shares. the
Conversion rate and the period after which conversion will take place
Effect are stated in the terms and conditions of the
Obligations at the time of issuance. On the contrary, non-convertible
Obligations are simple obligations with that option to achieve
Become equity. Your state will always remain a debt and will not
Become equity at any point of time.
Fully and in part convertible bonds: convertible bonds are
They fit into two - totally and partially convertible. Fully convertible
Obligations are fully converted into shares, while the
Convertible bonds have two parts. Convertible part becomes

Interest rate fixed rate and variable rate Obligations: fixed rate bonds have fixed. The interest and principal is returned to the person who produces the coupons. An administrator is designated for the realization of the insured asset that it is quite obvious that the security can not be assigned to each bondholder. They are considered as good as legal tender tickets because of their easy transmissibility. First as mortgage pledge Second Mortgage Payment Obligations: Mortgage payment guaranteed bonds / are classified into two types - the first and second mortgage bonds. Considering. Can be transferred by simple delivery to the new holder.equity according to the agreed conversion rate based on agreement. Which are attached to the certificate of obligations. One of obligations when the burden is secured by the some asset or set of assets that is known as insured or mortgage obligations and another when issued solely in the creditor of the issuer is known as naked or unsecured obligations. address. And other details they carry out are registered with the issuing company and provided that such obligations are transferred by the holder. And the certificate, respectively. Otherwise, the interest and capital will go to the previous owner because the company will pay the person who is registered. Which has to be informed to the issuing company of the update in their records. There is no restriction on the issuance of different types of obligations, provided that there is clarity on the claims of the holders of the obligations on the profits and assets of the company at the time of liquidation. name. The first mortgaged bonds have the first charge on the assets of the company while the second mortgage has the secondary charge which means the realization of the assets will serve first comply with the obligation of the first mortgage bonds and then it will be done for second . Non-convertible part becomes as good as exchangeable bonds, which is returned after the expiration of the agreed term. Transferability / Registration of registered obligations of the non-registered (bearer) of obligations: In the case of registered obligations. Secured Security and obligations with or without (nude): debentures are guaranteed in two ways. The unregistered are commonly known as issuance of bearer bonds.