What is the Issuance of Debentures & Bonds?

Debentures and Bonds are securities of companies that enable borrowing money by companies from the investing public. The instruments of debt provide fixed return to lenders but assist the company to grow without risking equity. Lawful issue enables compliance with the Companies Act, 2013, SEBI rules, and other laws governing finance.
Whether you are a public company, private limited, or NBFC—issue of debentures is a systematic method to raise expansion, debt refinance, or capital needs.
Most Significant Benefits of Issuing Debentures & Bonds
- Raise Huge Capital Without Diluting Equity: Debentures do not dilute equity, unlike shares. You retain full control but still raise capital.
- Cost-Effective Raising of Funds: The debenture interest is generally lower than that of bank loans, thus a smart debt option.
- Create Investor Confidence: Issuance of well-drafted, legally valid debentures creates confidence among investors and stakeholders.
- Fixed Repayment Schedule: Debentures are issued with pre-defined interest and maturity terms, enabling better financial planning.
- Attract Long-Term Investors: Corporate and institutional investors prefer debentures due to their regular returns and reduced risk exposure.
- Tax Advantages: Interest on debentures qualifies as a deductible business expense, reducing your firm’s tax outgo.
- Regulatory Recognition: SEBI-certified instruments promote your firm’s legal standing and open the way for additional fund sources.
- Flexible Structuring Choices: Choose secured/unsecured, convertible/non-convertible structures based on your financial strategy.
Services offered in Debenture/Bond Issuance
Private Placement of Debentures
Public Issue of Bonds
Preparation of Debenture Trust Deed
ROC Filing (Form PAS-3, MGT-14, etc.)
Appointment of Debenture Trustees
SEBI & Stock Exchange Compliance (if listed)
Unsecured & Secured Debenture Setup
Convertible & Non-Convertible Debenture Structuring
Board & Shareholder Resolutions
Why Issue Debentures or Bonds?
- Diverse to Bank Loans: Economical and flexible
- No Equity Dilution: Control entire ownership while raising money
- Attract Institutional Investors: Instructed debt appeals. to large investors
- Tax-Deductible Interest: Interest payable will qualify as business expenditure
- Long-Term Fund Assurance: Fixed repayment schedule assures fiscal planning
Why Legal Dalal Works Best
- Expert Legal Drafting: Legally correct documents, reviewed by senior CS/CA
- Finance-Backed Guidance: Guidance that meets investor comfort & business goals
- SEBI-Compliant Compliances: Applicable for listed & unlisted organizations
- Quick Turnaround: Minimum delays in approvals & filings
- Competitive Pricing: Big firm support at startup-friendly cost
Documents You’ll Need
- Board Resolution and Special Resolution
- List of Subscribers (Investors)
- Debenture Subscription Agreement
- Debenture Trust Deed
- Auditor’s Certificate (wherever applicable)
- Consent of Debenture Trustee
- Company Financials and Credit Terms
- PAN, CIN, MOA, AOA of the Company
Why Should You Select Legal Dalal For Debenture Issue Issuance?
Debenture Issue Issuance with Legal Dalal is simple. Here’s the step-via-step process:

Comprehending Your Requirement
We find out your fund requirement, investors base, and suggest the right instrument.

Legal Paperwork
Documentation of Debenture Subscription Agreement, Trust Deed, Offer Letter, Board Resolutions.

Appointment of the Trustee & Filing the ROC
Smooth appointment of SEBI-appointed debenture trustee and submission of necessary ROC filings (PAS-3, MGT-14, SH-7, etc.)

Issue Execution
Facilitation at investor onboarding, subscription collection, and tracking of compliances.

Post-Issue Compliances
We assist interest payment schedule, reporting, and redemption formalities.