The convertible debentures presently in India can he of three types: (i) compulsorily convertible within 18 months, (ii) optionally convertible within 36 months and (iii) convertible after 36 months with call and put features. However, only the first two types are popular.
Compulsory Partly Fully Convertible Debentures
Value. The holders of PCDs receive interest at a specified rate over the term of the debenture plus equity share (s) on part conversion and repayment of unconverted part of principal. Symbolically,