__________ debentures are those debentures that can be converted into equity shares after the expiry of a specified period.

Secured

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Unsecured

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Registered

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Convertible

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Solution

The correct option is D Convertible
Debentures are an important instrument to raise long term debt capital. They are issued by a company and bear a fixed rate of interest and the company promises to pay the debt at a future date. The debentures that can be converted into equity shares within a specified period of time are known as convertible debentures.

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Similar questions

Q21. Consider the following statements:

1. Debentures are long-term financial instruments which acknowledge a debt obligation towards the issuer.

2. The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs).

Which of the following statements are correct?

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