A private limited has taken a loan from other private companies.
Later that loan was converted to 5 years Compulsory Convertible Debentures.
Now, can that debentures be redeemed before its maturity date or will have to issue shares on maturity date?
Is the company breaking any rules if debentures are redeemed without conversion to equity shares?
Kindly help.
A compulsory convertible debenture (CCD) is a type of bond which must be converted into stock by a specified date. So specified date is important here. Before that date not valid.
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