GS PrelimsEconomyFinancial Institutions and Financial markets2003

Debenture holder of a company are its

Shareholders

Creditors

Debtors

Directors

Correct Answer: Option B

Explanation

1 A company raises capital through equity (shares) and debt (loans, debentures). 2 Shareholders are owners of the company, holding equity. 3 Debenture holders are individuals or institutions who have lent money to the company by subscribing to its debentures (a type of long-term debt instrument). 4 Therefore, debenture holders are essentially lenders to the company, making them Creditors of the company. 5 Debtors are those who owe money to the company. 6 Directors are individuals responsible for managing the company.

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