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.

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    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.

    FAQs

    Yes, filings such as PAS-3 and MGT-14 are necessary under Companies Act.
    Yes, by private placement to individual investors, subject to compliance.
    Appointment is mandatory in case of secured debentures and listed companies.
    Generally 15–30 working days, subject to type and mode of issue.
    Only in the event of public issue or listed instruments. Private placements are governed mostly by ROC and Companies Act provisions.

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