Question : Bank of Baroda Ltd. has outstanding 2,00,000; 10% Debentures of Rs. 10 each issued in 2016 due for redemption on 30th June 2020. How much amount of Debentures Redemption Reserve should be created before the redemption of debentures begins and also how much amount should it invest in specified securities?

Option 1: Rs 1,50,000

Option 2: Rs 15,000

Option 3: Rs 1,00,000

Option 4: Not required

Question : Choose which of the following statements is not correct.

Option 1: Debentures Redemption Investment is made by all companies redeeming the debentures.

Option 2: All India Financial Institutions (AIFIs), Banking Companies and Other Financial Institutions are not required to set aside amount to Debentures Redemption Reserve.

Option 3: Unlisted NBFCs and HFCs are not required to invest 15% of Outstanding Debentures in Specified Securities.

Option 4: Debentures Redemption Reserve can be used only for redemption of debentures.

Question : ICICI BANK Ltd., an Other Financial Institution, has outstanding 50,000,5% Debentures of Rs. 100 each redeemable at a premium of Rs. 10 each.These debentures are to be redeemed. Amount that should be invested in Debentures Redemption Reserve is

Option 1: Rs. 7,50,000

Option 2: Rs. 5,00,000

Option 3: Rs. 50,000

Option 4: Nil

Question : IDBI Ltd., an Other Financial Institution, is to redeem 10,000, 10% Debentures of Rs. 100 each on 31st December 2020. How much amount should it invest in specified securities?

Option 1: Rs. 3,00,000

Option 2: Rs. 10,00,000

Option 3: Rs. 5,00,000

Option 4: Nil

Question : Fair deal Private Ltd. is to redeem 20,000; 10% Debentures of Rs. 100 each on 30th June, 2020. The company should invest in specified securities on or before __________.

Option 1: 30th April, 2018

Option 2: 30th April, 2019

Option 3: 30th June, 2019

Option 4: 30th April, 2020

Question : After redeeming the debentures, in part or total outstanding debentures, amount of DRR relating to debentures redeemed is transferred to-------

Option 1: Capital Reserve

Option 2: General Reserve 

Option 3: Capital Redemption Reserve

Option 4: Securities Premium Reserve