Unsecured Debenture by Pvt company

[Muhammad Nazim]

Dear sir please give me your valuable opinion on the givensituation

AB PVT LTD Indian company having two shareholder one is A (NRE) holding only one share  and seconed Is B (foreign company) holding 9999 share.

FDI come under automatic route

all the investment by “B”

My Question is can we issue unsecured convertible debenture  to “B”  because Pvt ltd company can not issue unsecured debenture

AI Summary

Indian Company Seeks Guidance on Issuing Unsecured Convertible Debentures to Foreign Investor Under Automatic FDI Route An Indian private company, AB Pvt Ltd, with two shareholders-one being an NRE holding one share and the other a foreign company holding 9,999 shares-seeks advice on issuing unsecured convertible debentures to the foreign company. The investment by the foreign company falls under the automatic route of Foreign Direct Investment (FDI). The query highlights that private limited companies typically cannot issue unsecured debentures. The response inquires if the issue has been clarified, indicating a need for further information or resolution.