Debentures are, at least in the US, considered to be issuances of unsecured debt by legal entities to typically secure short term capital for expansion, production or other debt repayment. They are typically not backed by stock or equity. That would typically be bond issuance.

In india, the word debentures are typically used to describe bonds as well. They just ten to make the distinction between secured and unsecured.

Debentures are tools to gather money, for your business based on faith, typically backed by nothing but faith (credit) and when used properly, can give you the edge you are looking for. Talk to a qualified professional (CPA with SEC and IPO experience and/or SEC attorney).


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