PURCHASE OF DEBENTURES IN THE OPEN MARKET :

A company if authorised by its articles of association, can buy its own debentures in the open market. The debentures so purchased can be used either for immediate cancellation or redemption of debentures or for investment. The debentures so purchased for investment can subsequently either be reissued when the company requires additional cash or be cancelled if the company so desires. Debentures when purchased for investment are popularly known as “Own Debentures”. This can be categorised as follows: