Business Studies, asked by KINGutkarsh, 1 year ago

what do you mean by non convertible debentures

Answers

Answered by thebananaboy
3

Non-convertible debentures are those debentures which cannot be converted into equity shares throughout the time they have been with the business. They only get redeemed either by draw method, annual installment method, own purchase method, fresh issue method or general redemption techniques after the maturity period has elapsed or if the company was wound up / dissolved.

Convertible Debentures are debentures which can be converted into equity shares after a specific period of time from the date of issuance on filling an Option Form to convert debentures into equity shares. These converted debentures into equity shares are at par with the existing equity shares and you will get the return just like any other shareholder does based on the proportion of shares you hold.


thebananaboy: If it helps, kindly mark it as brainliest! :D
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KINGutkarsh: welcome
KINGutkarsh: can u answer of my this question
KINGutkarsh: describe briefly the loan from commercial bank
thebananaboy: There, answered - hope it helps!
KINGutkarsh: ok
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KINGutkarsh: for answering my questions
thebananaboy: No problem, it's good as I get to brush on my concepts for my 12th Board Exams.
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