Debentures or Bonds are issued by Companies and Institutions to raise money from Public for specific objective and are of Fully Convertible, Partially Convertible or Non-Convertible nature. These bonds are issued for a window to raise certain amount with SEBI approval. These generally offer higher rates depending on the prevailing interest rate scenario and their Credit rating.
These bonds can either be Secured or Unsecured.
These have a periodic interest payment option (Monthly, Quarterly, Annually) and Cumulative option (Compounded and paid at maturity) differing from issue to issue.
These can be held in Dematerialized and / or Physical mode.
These are listed on the exchange and thus can be traded, if held in Dematerialized mode.
The issue is rated by Independent Rating agencies like CARE, CRISIL, ICRA etc.