Optionally convt debenture
This query is : Resolved
16 March 2012
What is the meaning of optionally convertible debentures?
16 March 2012
Hi
Classification on the basis of convertibility
These debentures are issued by a company on the basis of option provided to them for conversion of debenture in the equity shares of the company after a certain period. It may be classified in the following categories:—
(a) Fully convertible debentures (FCDs).—These debentures are converted into equity shares of the company on the expiry of a specified period.
(b) Partly convertible debentures (PCDs).—Partly convertible debentures are divided into two portions, viz., convertible and non-convertible portion. The convertible portion is converted into equity shares of the company at the expiry of specified period. The non-convertible portion is redeemed at the expiry of the specified period in terms of there issue.
(c) Non-convertible debentures (NCDs).—Non-convertible debentures do not have any option to convert the same into equity shares and are redeemed at the expiry of specified period(s).
Regards
Classification on the basis of convertibility
These debentures are issued by a company on the basis of option provided to them for conversion of debenture in the equity shares of the company after a certain period. It may be classified in the following categories:—
(a) Fully convertible debentures (FCDs).—These debentures are converted into equity shares of the company on the expiry of a specified period.
(b) Partly convertible debentures (PCDs).—Partly convertible debentures are divided into two portions, viz., convertible and non-convertible portion. The convertible portion is converted into equity shares of the company at the expiry of specified period. The non-convertible portion is redeemed at the expiry of the specified period in terms of there issue.
(c) Non-convertible debentures (NCDs).—Non-convertible debentures do not have any option to convert the same into equity shares and are redeemed at the expiry of specified period(s).
Regards
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
- House Property Reporting in ITR
- TDS Claim year
- TDS Challan Code
- Relief u/s Section 89
- Rent lease agreement
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- CCFS 2026 Schemed
- Entries in AIS regarding sale of units and shares
- Merchant Export Accounting
- Lease agreement and tax on sale
- 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
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
