Corporate Law deals with the formation and operations of corporations and is related to commercial and contract law. A corporation is a legal entity created under the laws of the state it's incorporated within. Debt finance is a mode of raising assets of the corporation to fund the capital assets as well as day to day activities. The research paper discusses the meaning of debt financing and debentures. It also analyses the concept of debenture stock. The research distinguishes between shareholder and debenture holder. It examines the process of issuance of debentures and types of debentures. The paper discusses the provision of the Company Act, 2013 with regards to rights of denture holder. It concludes by making a comment on the present legal scenario with regards to debt financing and debentures.