{"id":12400,"date":"2026-03-13T08:16:17","date_gmt":"2026-03-13T08:16:17","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=12400"},"modified":"2026-04-06T08:53:29","modified_gmt":"2026-04-06T08:53:29","slug":"what-are-debentures-explained","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/","title":{"rendered":"What is Debenture? Types, Benefits &#038; Debenture Bonds 2026"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Debentures are long-term debt instruments that are issued by both private organisations and the government to raise funds. They are like a loan from investors to the company, but do not give up company ownership like shares.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And in return, you get regular interest payments. In simple terms, it\u2019s like a certificate where the company promises to pay back your money with interest on a set date. But they also come with their own risks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Want to understand <\/span><span style=\"font-weight: 400;\">what are debentures<\/span><span style=\"font-weight: 400;\"> in detail? Read this article to learn everything about the product.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Who_Can_Buy_Debentures\" >Who Can Buy Debentures?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Types_of_Debentures\" >Types of Debentures<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#1_Secured_Debentures\" >1. Secured Debentures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#2_Unsecured_Debentures\" >2. Unsecured Debentures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#3_Convertible_Debentures\" >3. Convertible Debentures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#4_Non-Convertible_Debentures\" >4. Non-Convertible Debentures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#5_Redeemable_Debentures\" >5. Redeemable Debentures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#6_Irredeemable_or_perpetual_Debentures\" >6. Irredeemable or perpetual Debentures:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#What_Is_the_Difference_Between_Debentures_and_Bonds\" >What Is the Difference Between Debentures and Bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Debentures_Tenure_and_Interest_Payment\" >Debentures Tenure and Interest Payment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Debentures_Taxation_Rules\" >Debentures Taxation Rules?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Key_Features_of_a_Debenture_Certificate\" >Key Features of a Debenture Certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Potential_risks_to_know\" >Potential risks to know<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#How_to_Invest\" >How to Invest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Debentures_Key_Takeaways_for_Investors\" >Debentures: Key Takeaways for Investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#Debentures_Related_FAQs\" >Debentures Related FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#1_Whats_the_difference_between_debentures_and_bonds\" >1. What\u2019s the difference between debentures and bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#2_Are_debentures_safe\" >2. Are debentures safe?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#3_Can_I_sell_debentures_before_maturity\" >3. Can I sell debentures before maturity?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#4_What_is_the_minimum_investment_in_a_debenture\" >4. What is the minimum investment in a debenture?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-debentures-explained\/#5_Can_NRIs_invest_in_debentures\" >5. Can NRIs invest in debentures?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Who_Can_Buy_Debentures\"><\/span><span style=\"font-weight: 400;\">Who Can Buy Debentures?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">First, let\u2019s start with the most basic question. Who can buy debentures? Debentures are open to a wide range of investors who want fixed income. Anyone can invest, from resident individuals, Hindu Undivided Families (HUFs), companies, trusts, and even NRIs, depending on the issuer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most debentures are listed on stock exchanges like NSE or BSE. You can buy them through a demat account via your broker, like GoldenPi. Some of these debentures are also private for specific investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want to explore debentures, AAA or AA-rated bonds, or fixed deposits, you can consider the <\/span><a href=\"https:\/\/goldenpi.com\/\"><span style=\"font-weight: 400;\">GoldenPi platform<\/span><\/a><span style=\"font-weight: 400;\">. Here, you can invest 100% digitally without making any branch visits. All you have to do is complete your KYC (if not registered), browse multiple investment options, and lastly make the payment.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Debentures\"><\/span><span style=\"font-weight: 400;\">Types of Debentures<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are a lot of types of debentures, so let\u2019s take a look at the main ones:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Secured_Debentures\"><\/span><b>1. Secured Debentures:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Secured debentures are backed by company assets like property or machinery. If the company fails to pay, these assets can be sold to pay the investors. This type has a lower risk compared to the other forms of debentures.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Unsecured_Debentures\"><\/span><b>2. Unsecured Debentures:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As the name suggests, unsecured debentures are the opposite of secured debentures, meaning they are not backed by any company asset. Instead, they rely on the company\u2019s credit rating and reputation. They often mean higher risk, but also yield higher returns.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Convertible_Debentures\"><\/span><b>3. Convertible Debentures:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Convertible debentures can be converted into the company\u2019s equity shares after a certain period of time. However, the conversion ratio is often predecided at the time of issue.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Non-Convertible_Debentures\"><\/span><b>4. Non-Convertible Debentures:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Non-convertible debentures stay as debt until maturity. They cannot be converted into equity shares at any given point in time.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Redeemable_Debentures\"><\/span><b>5. Redeemable Debentures:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Redeemable debentures have terms and conditions. They are paid at a set date or even before maturity.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Irredeemable_or_perpetual_Debentures\"><\/span><b>6. Irredeemable or perpetual Debentures: <\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These debentures do not have a fixed repayment date and can stay unpaid until the issuer decides to pay on their own time. Due to this, they are also called perpetual debentures.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_the_Difference_Between_Debentures_and_Bonds\"><\/span><span style=\"font-weight: 400;\">What Is the Difference Between Debentures<\/span><span style=\"font-weight: 400;\"> and Bonds?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Bonds and debentures don\u2019t have a huge difference and are both debt instruments that companies use to borrow money from investors. But the only big difference is in it\u2019s security.\u00a0<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Bonds are backed by assets, like property or equipment, so if the issuer can\u2019t pay, bondholders can claim those assets.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Debentures, on the other hand, are unsecured. They rely only on the issuer\u2019s creditworthiness and promise to repay, which makes them riskier than bonds.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This leads to another key difference, which is interest rates. Bonds usually offer lower rates because they\u2019re safer. But debentures carry higher interest rates to attract investors willing to take the extra risk.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bonds also tend to have longer tenures and are often issued by governments or big firms, while debentures are short-term and more common from private companies.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Debentures_Tenure_and_Interest_Payment\"><\/span><span style=\"font-weight: 400;\">Debentures<\/span><span style=\"font-weight: 400;\"> Tenure and Interest Payment?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As long-term debt instruments, debentures are often issued for a longer period of time, like 5-10 years. The tenure also depends on the type of debenture, like perpetual debentures, which are often issued without a set maturity date and usually have a very long, unspecified tenure. However, they are rare in Indian markets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, secured debentures are typically redeemed within 10 years of issuance; however, larger projects like infrastructure finance can extend upto 30 years, as per the <\/span><a href=\"https:\/\/ca2013.com\/rule-18-companies-share-capital-and-debentures-rules-2014\/\"><span style=\"font-weight: 400;\">law<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debenture interest rates, often called the coupon rates, usually range between 7-10% per annum, often even exceeding bank fixed deposits by yielding higher returns. These interests are paid on the face value (e.g., a 12% debenture with a \u20b91,000 face value pays \u20b9120 per year). They are redeemed semi-annually or annually, depending on the terms of the issuer.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Debentures_Taxation_Rules\"><\/span><span style=\"font-weight: 400;\">Debentures<\/span><span style=\"font-weight: 400;\"> Taxation Rules?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Income from these debentures is fully taxable as per the tax slab under \u201cIncome from Other Sources\u201d.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">TDS on debenture income is mandatory under Section 193 of the <\/span><a href=\"https:\/\/incometaxindia.gov.in\/charts%20%20tables\/tds%20rates.htm\"><span style=\"font-weight: 400;\">Income Tax<\/span><\/a><span style=\"font-weight: 400;\"> Act, 1961. The usual rate is of 10% for residents when interest payments exceed \u20b95,000 in a financial year if the PAN details are provided. Without PAN details, the TDS rate is 20%. TDS for NRIs are governed as per Section 195 of the Income Tax Act.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Features_of_a_Debenture_Certificate\"><\/span><span style=\"font-weight: 400;\">Key Features of a Debenture Certificate<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here\u2019s a quick look at what a debenture certificate usually covers:\u200b<\/span><\/p>\n<div class=\"pcrstb-wrap\"><table>\n<tbody>\n<tr>\n<td><b>Feature<\/b><\/td>\n<td><b>Details<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Principal Amount<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Money invested (e.g., \u20b91,000 minimum often)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Coupon Rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Fixed or floating interest % (usually 7-10%)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Maturity Date<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When principal is repaid (5-10+ years)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Convertibility<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes\/No for equity conversion<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Security<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Secured by assets or unsecured<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Credit Rating<\/span><\/td>\n<td><span style=\"font-weight: 400;\">AAA\/AA, etc., shows risk level<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Potential_risks_to_know\"><\/span><span style=\"font-weight: 400;\">Potential risks to know<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Debentures, though they yield higher returns, also come along with a greater set of risks. Let\u2019s look at the potential risks to know about when thinking of investing in debentures:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"><strong>Credit Risk<\/strong>: <\/span><span style=\"font-weight: 400;\">The issuer may become a defaulter on interest or maturity payments, so it\u2019s a must to check ratings from <\/span><a style=\"font-size: 14px; font-family: 'PT Serif', serif;\" href=\"https:\/\/www.crisil.com\/\"><span style=\"font-weight: 400;\">CRISIL<\/span><\/a><span style=\"font-weight: 400;\">\/ICRA.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Interest Rate Risk<\/strong>: <\/span><span style=\"font-weight: 400; font-size: 14px; font-family: 'PT Serif', serif;\">Fixed-rate debentures lose value if the market interest rates rise.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Liquidity Risk<\/strong>: <\/span><span style=\"font-weight: 400; font-size: 14px; font-family: 'PT Serif', serif;\">Some debentures may have a limited number of sellers or buyers, making trading difficult.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">In summary, debentures are a way for companies to borrow from you without giving up ownership. You earn predictable interest, often higher than FDs for good issuers. They suit conservative investors seeking better yields, but also come with higher risks.\u00a0<\/span><\/p>\n<h2 data-path-to-node=\"42\"><span class=\"ez-toc-section\" id=\"How_to_Invest\"><\/span>How to Invest<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-path-to-node=\"43\">If you want to explore debentures, AAA or AA-rated bonds, or fixed deposits, you can consider the <a href=\"https:\/\/goldenpi.com\/\">GoldenPi platform<\/a>. Here, you can invest 100% digitally without making any branch visits. All you have to do is complete your KYC (if not registered), browse multiple investment options, and lastly make the payment.<\/p>\n<h2 data-path-to-node=\"12\"><span class=\"ez-toc-section\" id=\"Debentures_Key_Takeaways_for_Investors\"><\/span><b data-path-to-node=\"12\" data-index-in-node=\"0\">Debentures: Key Takeaways for Investors<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-path-to-node=\"13\">\n<li>\n<p data-path-to-node=\"13,0,0\"><b data-path-to-node=\"13,0,0\" data-index-in-node=\"0\">Definition:<\/b> A debenture is a debt security used by companies to borrow money at a fixed rate of interest.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"13,1,0\"><b data-path-to-node=\"13,1,0\" data-index-in-node=\"0\">Debenture Bonds vs. Shares:<\/b> Investors become &#8220;creditors&#8221; rather than &#8220;owners,&#8221; meaning they receive interest payments regardless of company profit.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"13,2,0\"><b data-path-to-node=\"13,2,0\" data-index-in-node=\"0\">Redeemable Debenture:<\/b> These are instruments that the company is legally bound to pay back on a specific maturity date, providing a clear timeline for the return of principal.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"13,3,0\"><b data-path-to-node=\"13,3,0\" data-index-in-node=\"0\">Types:<\/b> Categories include Secured (backed by assets), Unsecured, Convertible (to equity), and Non-Convertible (NCDs).<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"13,4,0\"><b data-path-to-node=\"13,4,0\" data-index-in-node=\"0\">Interest &amp; Tax:<\/b> Interest (Coupon) typically ranges from 7-10% in India and is taxable as &#8220;Income from Other Sources.&#8221;<\/p>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Debentures_Related_FAQs\"><\/span><span style=\"font-weight: 400;\">Debentures<\/span><span style=\"font-weight: 400;\"> Related FAQs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Whats_the_difference_between_debentures_and_bonds\"><\/span><span style=\"font-weight: 400;\">1. What\u2019s the difference between debentures and bonds?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Debentures are mostly corporate and unsecured; however, bonds are usually issued by the government.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Are_debentures_safe\"><\/span><span style=\"font-weight: 400;\">2. Are debentures safe?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Debentures&#8217; risk levels depend on the type of debentures. Secured debentures are usually safer than unsecured and perpetual debentures.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Can_I_sell_debentures_before_maturity\"><\/span><span style=\"font-weight: 400;\">3. Can I sell debentures before maturity?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, you can sell debentures if they are listed on stock exchanges like NSE and BSE.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_What_is_the_minimum_investment_in_a_debenture\"><\/span><span style=\"font-weight: 400;\">4. What is the minimum investment in a debenture?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Some Public Sector bonds may start as low as \u20b910,000; NCDs often require higher amounts. Minimum investment depends on the issuer, with no upper limit.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Can_NRIs_invest_in_debentures\"><\/span><span style=\"font-weight: 400;\">5. Can NRIs invest in debentures?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, NRIs can invest in both private and government bonds in India via NRE\/ NRO accounts under <\/span><a href=\"https:\/\/www.rbi.org.in\/fiilist\/index.html\"><span style=\"font-weight: 400;\">Portfolio Investment Schemes<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [<\/p>\n<p>    {\n      \"@type\": \"Question\",\n      \"name\": \"What\u2019s the difference between debentures and bonds?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Debentures are mostly issued by corporations and are generally unsecured, whereas bonds are usually issued by the government and may carry different levels of security depending on the issuer.\"\n      }\n    },<\/p>\n<p>    {\n      \"@type\": \"Question\",\n      \"name\": \"Are debentures safe?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The risk level of debentures depends on their type. 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They are like a&hellip;<\/p>\n","protected":false},"author":8,"featured_media":12421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[22],"tags":[136,934,972],"class_list":["post-12400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-essentials","tag-debentures","tag-what-are-debentures-explained","tag-debenture-certificate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What are Debenture? Types, Benefits &amp; Debenture Bonds 2026<\/title>\n<meta name=\"description\" content=\"Understand what are debenture, how debenture bonds work, and the different types like redeemable debenture. 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