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
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.