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In this video, the host uses a relatable scenario to introduce the concept of debentures. It starts with a casual situation where one friend borrows money to buy jeans, highlighting a friendship-based transaction. This is contrasted with a business scenario where a company seeks to expand and requires capital. In this case, the business raises funds from investors or financial institutions, promising to repay the loan with interest. This formal arrangement is identified as debentures. The video promises a comprehensive discussion on debentures, including their functions, types, advantages, and disadvantages.