Question : Arrange the following in the correct sequence in the context of debenture.
(A) Payment to debenture-holders
(B) Creation of DRR
(C) Issue of debentures
(D) Redemption becomes due
Choose the correct answer from the options given below:
Option 1: (A), (B), (C), (D)
Option 2: (A), (C), (B), (D)
Option 3: (B), (A), (D), (C)
Option 4: (C), (B), (D), (A)
Correct Answer: (C), (B), (D), (A)
Solution : Following is the correct sequence till the payment of debentures: 1. Issue of debentures, 2. Creation of DRR, 3. Redemption becomes due, 4. Payment to debenture-holders.