“Foods India Ltd: is a company engaged in the Production of Packaged Juice since 2010. Over this period, a larger number of Competitors have entered the Market and are putting a Tough Challenge to “Foods India Ltd.” . To face this challenge and to increase its Market Share, the company has decided to replace the Old Machinery with an estimated Cost of Rs 100 Crores . To raise the Finance, the company decided to Issue, 9 % Debentures. The Finance Department of the company has estimated that the Cost of Issuing the 9 % Debentures will be Rs 10,00,000. The Company wants to meet its Floatation Cost .
(a) Explain the Instrument that the Company may Issue for this Purpose.
(b) In which type of Financial Market , is the Instrument explained in (a) above traded ? Also explain how safe the instruments are in this Market