Debentures
Definition
Long-term debt instruments issued by a company to the public for raising loan capital, carrying a fixed rate of interest (coupon rate) payable regardless of profit. Debenture holders are creditors, not owners, of the company.
Example
"A company issues 12% Debentures of ₹100 face value. The holder receives ₹12 per debenture annually as interest, whether or not the company earns profit."