Question

What is a 'Convertible Debenture'?

Answer 1

Convertible Debentures are those debentures which are convertible in equity shares after some specified time generally mentioned at the time of issue of such debentures. These convertible debentures are divided into two categories

(i) Partly convertible debentures: In this only a part of debenture is eligible to be converted into equity shares.

(ii) Fully convertible debentures: In this all of the debenture can convert to equity shares.