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CA Intermediate · Corporate and Other Laws · Registration of Charges

Aarav Engineering Ltd. issued a series of debentures to the public secured by a charge on its assets. Which statement correctly describes the registration requirement for charges securing a series of debentures under the Companies Act, 2013?

A charge securing a series of debentures can be registered by filing particulars once for the whole series with the Registrar within the prescribed period. Individual debenture holders need not register separately, and the requirement is not limited to immovable property or exempted for debentures.

  1. AEach debenture holder must register their own charge separately with the Registrar
  2. BRegistration is needed only when the debentures are secured on immovable property
  3. CThe series of debentures need not be registered because debentures are securities
  4. DParticulars of the charge securing the series may be filed as a single registration with the Registrar, covering the debentures of the series together, within the prescribed periodCorrect

Explanation

For a series of debentures containing a charge, the Act allows a single filing of particulars covering the whole series, rather than separate registration by each holder. Debentures are not exempt from the registration requirement merely because they are securities, and the requirement is not limited to immovable property. Individual holder-by-holder registration is not required.

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