The debentures which cannot be converted into equity shares are called ___________ debentures.

Secured

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Unsecured

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Convertible

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Non-convertible

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Solution

The correct option is D Non-convertible
Debentures are given out to the creditors as a promise to repay the debt held by the company at a fixed rate of interest. Some of the debentures are convertible and non-convertible. The debentures which cannot be converted into equity shares are called as non-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?

500

9 %

R s .100

6 %

R s .100

R s . 25

9 %

9 %

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