Meaning: -As the debenture capital is borrowed capital it has to be paid back. The repayment of debenture amount to debenture holder is called as redemption of debentures. Every company is required to create a 'Debenture redemption reserve' for the purpose of redemption of debentures.

1.      Board Meeting: -A board meeting is held to finalise procedure for redemption of debentures. A resolution is approved in the meeting to redeem the debentures.

2.      Intimation about Redemption to debenture holder: -Secretary has to send letter to debenture holders giving detail of redemption. He informs them to surrender debenture certificate.

3.      Refund: -A secretary has to inform bankers to carry out necessary steps to repay to debenture holders.

4.      Changes in Register of Debenture holders: -After completion of redemption procedure, secretary notes down the details of redemption in Register of Debenture holders.

5.      Changes in the Register of Charges: -The charges created on assets in favour of debenture holders are cancelled and register of charges is suitably modified.

Intimation to Registrar of Companies: -Company informs the Registrar about the details of redemption of debentures.