Repayment of non convertable debenture

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SHYAM KRISHNAN K (Querist)
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02 March 2025 Our company has accepted debenture from existing shareholders with the condition of convert the debenture into share in future now some of them are requested for resumption is it possible to redeem the debenture on request of debenture holders

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 March 2025 Redeeming debentures upon the request of debenture holders depends on the terms and conditions specified at the time of issuance.
If the debentures are convertible, they can be converted into shares as per the agreed terms. This process involves converting the debt obligation into equity, which typically requires a special resolution and approval from shareholders.
However, if debenture holders request redemption before the conversion option is exercised, it is generally not possible unless specified in the debenture agreement.
Non-convertible debentures are typically redeemed at maturity or as per the terms specified in the debenture agreement. Early redemption might not be possible unless the agreement allows for it.

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