Arrange the following in the correct sequence in the context of debenture.
(A) Payment to debenture-holders
(B) Creation of DRR
(C) Issue of debentures
(D) Redemption becomes due
Choose the correct answer from the options given below:

Correct option is D

The correct sequence is:
(C) First, the issue of debentures: The company issues debentures to raise funds from investors.
(B) Then the creation of Debenture Redemption Reserve (DRR): The company sets aside a portion of its profits in a reserve to ensure funds are available for redeeming debentures.
(D) Followed by the debenture redemption becoming due: The obligation to repay the debenture holders matures, requiring payment.
(A) Finally, the payment to debenture-holders: The company pays the principal and interest to debenture holders, redeeming the debentures.
This sequence ensures that all regulatory and financial preparations are made before debenture holders are paid.