What is convertible debenture in accounting?

A convertible debenture is a kind of long-term debt which can be transformed into stock after a specific period of time. A convertible debenture is usually an unsecured bond or a loan as in there is no primary collateral interlinked to the debt.

What is convertible debentures answer in one sentence?

Convertible Debentures are the debentures which are converted into equity shares on the expiry of specified period and at a specified rate mentioned in the terms of issue.

What is convertible debenture and non convertible debenture?

Definition. Convertible debentures are those type of debentures that can be converted into equity shares of the company. Non-convertible debentures are those debentures that cannot be converted into equity shares of the company. Rate of Interest.

What is convertible debentures in India?

What are convertible debentures 12th class?

Convertible debentures: Is which can be converted into equity shares of the issuing company after a predetermined period of time. Non-convertible Debentures, which are simply regular debentures, cannot be converted into equity shares.

Are convertible debentures a good investment?

A convertible debenture will usually return a lower interest rate since the debt holder has the option to convert the loan to stock, which is to the investors’ benefit. Investors are thus willing to accept a lower rate of interest in exchange for the embedded option to convert into common shares.

Is it good to buy NCD?

NCDs from one single sector (NBFCS that focuses on personal loans) are not safe to invest in. This can lead to higher risk exposure. NCDs from the secondary markets have always delivered higher returns in the past.

What are convertible debentures shaala?

Convertible Debentures are those debentures that can be converted into equity shares after a specified period of time. Partly Convertible Debentures: When only a part of the amount of a debenture is convertible into equity share, then these debentures are called Partly Convertible Debentures.

Are convertible debentures considered debt?

A convertible debenture is a type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period. Convertible debentures are usually unsecured bonds or loans, often with no underlying collateral backing up the debt.