Can debentures be issued at a discount?

Debentures can indeed be issued at a discount under certain conditions, which makes the selected answer accurate. Specifically, the issuance of debentures at a discount is permitted in circumstances where those debentures do not convert into shares immediately. This aligns with legislation and regulatory frameworks that often condition the ability to issue discounted debentures based on the nature of the debt instrument, ensuring that the conversion feature does not grant immediate equity rights that could affect existing shareholders adversely.

This differs from other potential scenarios such as issuing debentures that convert into shares immediately, where provisions may apply to prevent dilution of existing shareholders' interests. The rationale behind allowing discounts under specific conditions is to provide companies with flexibility in attracting investment, particularly in competitive financial markets where lower initial costs can entice investors.

The other options are not aligned with current regulations. For instance, stating that debentures cannot be issued at a discount under any circumstances does not consider the flexibility provided by regulatory frameworks. Likewise, while shareholder approval may be necessary for certain corporate actions, it is not universally required solely for the issuance of discounted debentures. Overall, the correct understanding hinges on the specific conditions surrounding the issuance and characteristics of the debentures in question.