Debentures which are ___________ into equity shares or in any other security is called convertible debentures.

Non-convertible

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Convertible

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Split

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None of the above

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Solution

The correct option is C Convertible
There are some debentures which are classified on the basis of convertibility:
Convertible debenture and Non-convertible debenture.
Debentures which are convertible into equity shares or in any security either at the option of the company or the debenture holders are called convertible debentures. These debentures are either fully convertible or partially convertible.

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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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