Distinguish between Redemption of shares and Redemption of debentures.

Redemption of Shares: All shares are not redeemable, only those stated to be redeemable, at the time of issue can be redeemed. Section 55 deals with redemption of preference shares. The payment for the shares must generally come from the reserves or profit of the company. Redemption of debentures: Redemption of the debentures shall be made in accordance with Section 71 of the Companies Act, 2013. Redemption of debentures means payment of the amount of debentures by the company. When debentures are redeemed, liability on account of debentures is discharged.