Debenture

noun

/dɪˈbɛn.tʃər/

A long-term debt instrument issued by a company or government, bearing a fixed rate of interest and usually unsecured, that acknowledges a debt owed to the holder.

✍️ Usage in a UPSC answer

To finance its ambitious infrastructure pipeline without diluting equity or straining the fiscal deficit, the public-sector undertaking floated non-convertible debentures, betting that institutional investors would prize the assured coupon over the volatility of the broader bond market.

Synonyms

bondnotedebt securityfixed-income instrumentloan stockIOU

Antonyms

equitysharestock

🌱 Word Family

debentures (n pl), debenture-holder (n), debenture-stock (n)

🔡 Root

Latin dēbentur = there are owing (3rd pers. pl. passive of dēbēre = to owe); dē- = from + habēre = to have

📜 Etymology

From Latin dēbentur ("there are owing"), the third-person plural passive of dēbēre ("to owe"); used in English since the mid-15th century, originally as the opening word of such debt certificates.

🧠 Memory Hook

Hidden inside DEBENTURE is DEBT — and its Latin root debentur literally means "they are due," i.e. a debt that must be repaid.

💰 Indian Economy 📖 Seen in: Capital Markets, Insurance & Financial...

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