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Question : Which of the following is not a characteristic of Bearer Debenture?

Option 1: Their transfer requires a deed of transfer

Option 2: They are treated as negotiable instrument

Option 3: They are Transferable by mere delivery

Option 4: The interest on it is paid to the holder irrespective of identity


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Their transfer requires a deed of transfer


Solution : Unregistered bearer debentures can be transferred through simple delivery. The ownership of these securities is not documented in the company's debenture-holders' register.

Hence the correct answer is option 1.

 

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