The correct answer is: D. Debentures
Debentures are a type of loan that a company issues to raise money. They are considered to be a debt security, which means that they are a form of borrowing. Debentures are typically issued with a fixed interest rate and a maturity date, at which point the company must repay the principal amount to the bondholders.
Equity shares, on the other hand, are a type of ownership interest in a company. When you buy equity shares, you become a part-owner of the company. Equity shares do not have a fixed maturity date, and they do not pay a fixed interest rate. Instead, the value of your equity shares will fluctuate based on the performance of the company.
Preference shares are a type of equity share that has certain preferential rights over ordinary shares. For example, preference shareholders may be entitled to a fixed dividend, which must be paid before any dividends are paid to ordinary shareholders. Preference shares also typically have a higher priority claim on the company’s assets in the event of liquidation.
Cumulative preference shares are a type of preference share that entitles the holder to unpaid dividends from previous years before any dividends are paid to ordinary shareholders.
In conclusion, debentures are the only type of security listed that is not redeemable.