Debenture Insert Alternative Choice For Free

Broadly, the popular debenture instruments used by FPIs are of three kinds: Non-convertible debentures (NCD), Compulsorily Convertible Debentures (CCDs), and Optionally Convertible Debentures (OCD). NCDs are pure debt instruments. NCDs are very much like a bank loan, except in the way NCDs can be redeemed.

The major types of debentures are:Registered Debentures: Registered debentures are registered with the company.Bearer Debentures:Secured Debentures:Unsecured Debentures:Redeemable Debentures:Non-redeemable Debentures:Convertible Debentures:Non-convertible Debentures:More items...?Aug 6, 2018

Debentures can only be issued by businesses and are used to raise capital. An investor investing in a debenture is investing in a company and should understand that company's specific risks. Investing in a fixed deposit can be done by both individuals and institutions.

Definition: Optionally convertible debentures are debt securities which allow an issuer to raise capital and in return the issuer pays interest to the investor till the maturity.

Ans. Individuals who pay the company to purchase debentures are called debenture holders. Unlike shareholders, debenture holders only lend loans to the company for a specified period. Q3.

According to section 71 of the Companies Act, 2013, a company may issue debentures with an option to convert debentures into shares either wholly or partly at the time of redemption. originally issued at a discount can be converted into shares on the basis of the nominal value of the debentures.

Debentures are long-term financial instruments issued by a company for specified tenure with a promise to pay fixed interest to the investor.NCD investment can be held by individuals, banking companies, primary dealers other corporate bodies registered or incorporated in India and unincorporated bodies.