CUET Preparation Today
What are Convertible debentures? |
That can be converted into equity shares at the option of the shareholders That can be converted into equity shares at the option of Debenture holders That can be converted into equity shares when the company defaults in interest payments That can be converted into equity shares when the company is running into profits at the option of shareholders |
That can be converted into equity shares at the option of Debenture holders |
The correct answer is option 2- That can be converted into equity shares at the option of Debenture holders. Debentures which are convertible into equity shares or in any other security either at the option of the company or the debentureholders are called convertible debentures. These debentures are either fully convertible or partly convertible. |
