Financial Instruments which are issued with detachable warrants and are redeemable after certain period is known as :
Secured Premium Notes
Secured Premium Notes (SPNs) are secured debentures issued with a detachable warrant that lets the holder apply for equity shares; they carry no interest during an initial lock-in period and are redeemed in instalments, with a premium, after a specified period. TISCO first issued them in India in 1992.
Deep Discount Bonds are issued at a large discount to face value, pay no periodic interest and are redeemed at face value on maturity, without warrants.
Bunny Bonds let interest be reinvested in additional bonds of the same issue, and Junk Bonds are high-yield bonds rated below investment grade; neither is defined by detachable warrants.
Hence, the answer is Secured Premium Notes.
Similar Questions
Consider the following characteristics :
(a) High risk high return opportunity
(b) Small and medium size enterprise
(c) Private equity stakes in start-ups
(d) Investment fund
The above attributes are found in :
Important Questions from Types of Financing
Match the items of List-II with the items of List - I and indicate the correct code :
List – I
List – II
(a)
Term finance
(i)
Providing finance to new or existing
industrial units for encouraging commercial
application of technology/expansion.(b)
Refinance
(ii)
Delivering of banking services at affordable
cost to the vast sections of disadvantaged
and low-income groups.(c)
Financial inclusion
(iii)
Providing replenishment finance to eligible
institutions for their loans to industrial
concerns.(d)
Venture capital
(iv)
Providing finance to the borrowers for
expansion and modernization of plant
and equipment.- Which of the following statements are True ?
A. Preference capital represents a hybrid form of financing.
B. Preference capital carries definite legal obligation.
C. Retained earnings represent the profits ploughed back in the business.
D. Disadvantages of equity capital are that it represents a permanent source of finance.
E. Equity share holders do not have right to claim over assets in the event of liquidation
Choose the correct answer from the options given below : Consider the following characteristics :
(a) High risk high return opportunity
(b) Small and medium size enterprise
(c) Private equity stakes in start-ups
(d) Investment fund
The above attributes are found in :
