Explain Debenture Redemption Reserve (DRR)

Explain Debenture Redemption Reserve (DRR)


Debenture Redemption Reserve is non-convertible debentures which has to be created by seeing the profits and the shares as more it grows more the amount will be collected. For this an upto date commercial project finance has to be produced and provided so that creation of the DRR can be done. If there is a profit and the utilization of the profit has to be done then the DRR can be created either in higher amounts or in equal instalments for a long duration of time. If residual profits after transfer to DRR are not enough to distribute the dividend then companies are allowed to distribute the dividend from general reserves for certain years. DRR takes only 50% of the amount of debenture issue which has been created through the process.
What functions does the Merchant bank perform when a company wants to raise funds from intermediaries?
Merchant bank is used in the case of private equity investment where unregistered securities of either privately…
Explain Bankers to the issue.
Bankers to the issue is the collection of activities which are performed by the banker to an issue such as submission of application…
What functions do the registrars to the issue perform?
Registrar is the person who finalizes the list of eligible allottees after removing the invalid applications…
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