Debentures are written instrument of debt and are A legal document reduced or issued under the common seal of a company, they represent a secure means by which a creditor can lend money to the debtor.

Then the company issue a debenture it should make sure that it does not carry any voting rights. The company cannot issue a prospectus or make an invitation or make an offer to its members or the public in access of 500 for the subscription of its debentures. if the company wishes to do so they should have selected one or more debenture trustees before such issue or offer and prescribe the conditions that will govern the appointment of trustees. The clarification from the government will be needed if there is an issue of debenture for more than 500 members or any number of public And creation of debenture trust is a must. Protection of the interest of the debenture holders and remedy to their grievances is the responsibility of the debenture trustee and they will have to take steps in accord with it. If the contract or any provision of trust deed exempts a trustee or indemnifies him against any liability for the violation of trust, will stand void. Open debenture it is important do not make any default in compliance with the order of the tribunal or else it will be punishable with imprisonment for a term which may extend to a period of 3 years or with a fine that will be not less than 2,00,000 and can be extended to 5,00,000 or it will be punishable with both imprisonment and fine.

To issue a debenture a board meeting needs to be called And some resolution must be approved. It is important to have a resolution passed for the offer letter for private placement inform number PAS- 4, approval of form number PAS- 5. Application forms need to be filed. Appointment of debenture trustee and sanction of debenture trustee agreement will be needed. The creation of charge on assets of the company needs to be authorized. If The company feels the need they can appoint an expert for approval of an increase of borrowing powers. A debenture subscription agreement will be necessary. An extraordinary general meeting of shareholders must be held and to do so one has to fix the day, date, and time.

Some documents are required after the issuance of notice for the extraordinary general meeting. Documents that are needed are debenture subscription agreement, records of a private placement offer in the form no. PAS- 5, mortgage agreement call creation of charge on a set of the company, debenture trustee agreement, and offer letter for private placement inform number PAS- 4 and the application form needs to be filed.

Once the approval of the debenture issue is received one has to make sure to file the necessary documents with the registrar of companies. The company will need to file form no. PAS-4, PAS-5 in Form no. GNL-2, Offer letter in Form no. MGT-14, Copy of board resolution, special resolution, debenture trustee agreement, debenture subscription agreement, form no. PAS-3 that is related to return of allocation, form no. CHG-9 for creating a charge on the assets of the company.