(1) Fully Convertible Debentures (FCD) : In accordance with the agreement with debenture holders, on completion on the specified time period these debentures are converted into equity shares. The company gives two options to holders (1) To redeem the debentures
(2) To take equity shares of the same amount. If the debenture holder opts for fully convertible debentures then his rights as creditor come to an end and he gets rights as equity share holder.
(2) Partly Convertible Debenture (PCD) : Here debentures are divided into two parts, where one part is fully convertible and the other part is non-convertible. Equity shares are issued against the convertible part while the non convertible part is reedemed.
(1) Fully Convertible Debentures (FCD) : In accordance with the agreement with debenture holders, on completion on the specified time period these debentures are converted into equity shares. The company gives two options to holders (1) To redeem the debentures
(2) To take equity shares of the same amount. If the debenture holder opts for fully convertible debentures then his rights as creditor come to an end and he gets rights as equity share holder.
(2) Partly Convertible Debenture (PCD) : Here debentures are divided into two parts, where one part is fully convertible and the other part is non-convertible. Equity shares are issued against the convertible part while the non convertible part is reedemed.