REDEMPTION OF DEBENTURES (SECTION 71) : Debenture Redemption Reserve (DRR) Creation of DRR The company is required to create a debenture redemption reserve for the redemption of such debentures. The company shall credit the DRR adequate amounts from out of its profits of the company available for payment of dividend every year until such debentures are redeemed. DRR shall be utilized by the company only for the purpose of redemption of debentures. Rule 18 (7) of the Companies (Share Capital and Debentures) Rules, 2014 provide that the company shall create a DRR for the purpose of redemption of debentures, as per following conditions: (16th Aug 2019) a) DRR shall be created out of the profits of the company available for payment of dividend; b) The limits with respect to adequacy of DRR & investment of deposit shall be as under: i. For AIFI & Banking Co., No DRR is required. ii. For other FI, DRR shall be as applicable to NBCF registered with RBI. iii. For listed companies (othe...