Compulsory convertible debentures are debt or equity
This query is : Resolved
19 July 2016
Dear All,
I want to know that whether Compulsory Convertible Debentures (CCDs) having buy/put option are debt or Equity. Also please provide any supporting for the answers.
Thank you in advance.
I want to know that whether Compulsory Convertible Debentures (CCDs) having buy/put option are debt or Equity. Also please provide any supporting for the answers.
Thank you in advance.
19 July 2016
Till the time of conversion, it is DEBT.
Once converted into equity, it becomes equity.
(The answer is from the view point of accountancy.)
For a banker, the company may argue, that since it is compulsory covertible, please treat it as equity
Once converted into equity, it becomes equity.
(The answer is from the view point of accountancy.)
For a banker, the company may argue, that since it is compulsory covertible, please treat it as equity
Message likes :
1 times
19 July 2016
Amol ji can u please provide any supporting for the same i.e. any RBI circular or any guideline.
19 July 2016
No.....RBI has not clarified whether or not it is debt or equity
https://indiacorplaw.blogspot.in/2009/03/fdi-compulsorily-convertible-debentures.html
https://www.india-financing.com/Understanding_Compulsory_Convertible_Debentures.pdf
https://indiacorplaw.blogspot.in/2009/03/fdi-compulsorily-convertible-debentures.html
https://www.india-financing.com/Understanding_Compulsory_Convertible_Debentures.pdf
19 July 2016
you are most welcome.
19 July 2016
yes, you can write back anytime, no issues.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Supply through E-commerce Operators
- Relief u/s Section 89
- Rent lease agreement
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Merchant Export Accounting
- STCG on ETF gold & silver
- If there is Long term capital gain exists how much total income to be considered
- Suggestions required for income tax filing-software (FY 2025-26)
- REGARDING GST LIABILITY/....
- REGARDING SECTION 44AE
- Sales return eway bill
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
