Abstract
Debentures have become popular for raising capital by new and existing companies as a result of recent amendments to the guidelines governing debenture issues. However, these guidelines do not provide safeguards to debentureholders against erosion of the value of debentures. Premchander identifies the risks that debentureholders have to reckon with and discusses the nature of covenants that debentureholders should impose on company shareholders. He suggests certain modifications to guidelines for protecting the interests of investors.
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