Debenture Replace Selected Option For Free

Conversion of Debentures into Equity Shares: Step by Step Guide Hold Board Meeting. Hold General Meeting. File Form MGT-14. Letter of Option. Allotment of Shares. Issue of Share Certificate. Change in Register of Charges. Entry in Register of Members.

It means that for every debenture of Rs. 1,000 denomination, you will get 20 equity shares. The issuer decides the conversion ratio at the time of the debenture issue. You have the right to hold on to the debenture till maturity and not convert it into equity.

This feature gives the bondholder some security that may offset some of the risks involved with investing in unsecured debt. A convertible debenture differs from convertible notes or convertible bonds, generally in that debentures have longer maturities.

A debenture is essentially a long-term loan that a corporate or government raises from the public for capital requirements. For example, a government raising funds to construct roads for the public.

Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it.

A convertible debenture is a sort of long-term debt issued by a company that may be converted into equity stock after a predetermined period. Convertible debentures are often unsecured bonds or loans with no underlying security to back them up. Since a company can issue wholly or partly convertible debentures.

A compulsory convertible debenture is a bond that investors need to convert into stock after the expiry of its maturity period. It helps a company by enabling them to repay their debt without spending cash and benefits investors in the face of fixed interest and later ownership of the company share.

Definition: Optionally convertible debentures are debt securities which allow an issuer to raise capital and in return the issuer pays interest to the investor till the maturity.

Debentures are liquid and could be traded on the National stock exchange(NSE) and the Bombay stock exchange (BSE).

Bonds or debentures are traded both on the BSE and the NSE. In retail lots upto Rs 10 lakhs, they are traded in the CM (Capital Market) segment on NSE and the F Group on BSE. You can see the scrip wise code and quotes for these debentures and buy and sell accordingly.