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A convertible debenture can be transformed into equity shares after a specific period. The option of converting debentures into equity shares lies with the holder. A convertible debenture will provide regular interest income via coupon payments and repayment of the principal amount at maturity.

Instalments After the Maturity Date Under this redemption process, the company agrees to redeem the debentures through instalments. These instalments are pre decided at a particular date when issuing debentures. The total liability amount is divided by the total number of years.

Conversion of debentures is the exchange of debenture into new debenture, preference shares and equity share. Conversion of debentures are redeemed by converting them into new debenture or into shares.

The resolution for Conversion of Debentures into Equity Shares should be approved in the Board Meeting. The approval of shareholders, as well as Debentures Holders, is taken for the Conversion. After passing of the Board Resolution, the notice for General Meeting should be passed.

New equity shares can be issued to the debenture-holders at par, at discount or at premium when the conversion of debentures into equity shares process will be start. Liability of debentures which we are converting will not increase or decrease in case issue of shares at discount or at premium.

Procedure of converting debentures into shares Articles of Association of the Company should allow for Conversion option. Hold Board Meeting and pass the Board Resolution for Conversion of CCD into Equity Shares along with approving Notice of Genernal Meeting for the approval of Shareholders of the Company.

As per SEBI guidelines, the conditions of the creation of DRR (Debenture Redemption Reserve) do not apply to the conversion method. The debenture holders have the option to convert their debentures in the case when the conversion is to be made at or after 18 months but before 36 months of allotment.