Debenture Convert to PPT For Free

Debentures are converted into equity shares on maturity. The conversion date and rate of conversion is stated in the prospectus.

The Companies Act, 2013 authorizes for the Conversion of Debentures into Equity Shares. The Company does this type of Conversion for economic benefit to shareholders.

The debenture can typically only be converted into stock after a predetermined time, as specified in the bond's offering. A convertible debenture will usually return a lower interest rate since the debt holder has the option to convert the loan to stock, which is to the investors' benefit.

Solution. Fully convertible debentures are converted into equity shares on maturity.

The debentures which cannot be converted into equity shares are called as non-convertible debentures.

Convertible debentures are converted into equity shares on maturity. The conversion date and rate of conversion is stated in the prospectus. The company does not redeem convertible debentures. Convertible debentures can be classified into fully convertible and partly convertible debentures.

The company can convert only some portion of these partially convertible debentures into equity shares of the company on the expiry of the specified period. The remaining portion the holders can redeem at maturity as per the maturity period.

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.

Debentures are a debt instrument used by companies and government to issue the loan. The loan is issued to corporates based on their reputation at a fixed rate of interest.Secured and Unsecured, Registered and Bearer, Convertible and Non-Convertible, First and Second are four types of Debentures.

Debenture is a written instrument acknowledging a debt under the common seal of the company. It contains a contract for repayment of principal after a specified period or at intervals or at the option of the company and for payment of interest at a fixed rate payable usually either half-yearly or yearly on fixed dates.