Question : What is the minimum percentage that the company should invest in a Debenture Redemption Investment Account?
Option 1: 8.50% of the nominal value of debentures to be redeemed by 31st March of next year.
Option 2: 12.50% of the nominal value of debentures to be redeemed by 31st March of next year.
Option 3: 15% of the nominal value of debentures to be redeemed by 31st March of next year.
Option 4: 25% of the nominal value of debentures to be redeemed by 31st March of next year.
Correct Answer: 15% of the nominal value of debentures to be redeemed by 31st March of next year.
Solution : Debenture Redemption Investment is an investment made by a company on or before (DRI) 30th April of the current year of an amount that is at least equal to 15% of the nominal value of debentures to be redeemed by 31st March of next year.
Hence, the correct answer is option 3.
