Question

Discount on Issue of Debentures is restricted to
A. 0.1
B. 0.2
C. 0.25
D. None of these

Answer 1

Correct Answer - D

Answer 2

The correct option is (D).

However, shares can be issued at discount in accordance with the provisions of Section 79 of The Companies Act, 1956 which stipulates that the rate of discount must not exceed 10% of the face value while debentures can be issued at any rate of discount.