Question

Which of the following is not a characteristic of Bearer Debentures?

Options

• They are treated as negotiable instruments.

• Their transfer requires a deed of transfer.

• They are transferable by mere delivery.

• The interest on it is paid to the holder irrespective of identity.

Answer 1

Their transfer requires a deed of transfer.

Explanation:

Transferring bearer debentures does not necessitate the use of a deed of transfer. These debentures can be transferred simply by delivering them.