According to Section 2(30) of The Companies Act, 2013, 'Debenture' is defined.
Section 2 of the Companies Act, 2013 contains definitions of various terms used throughout the Act. Each definition is given a subsection number in brackets.
Section 2(30) specifically states: "debenture includes debenture stock, bonds and any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not."
The format 2(30) means:
- 2 → Section number (Definitions section)
- (30) → Subsection number (Specific definition of Debenture)
This definition is important as it clarifies that debentures are not limited to traditional debentures only, but encompass a broader range of debt instruments including debenture stock, bonds, and other securities, regardless of whether they create a charge on company assets.
The correct answer is Option 4: 2(30).