In conversion of debentures when we give reverse back when deb are converted before maturity.what are the conditions that needs to be satisfied. For eg should it be fully convertable
Dear Student
Conditions on conversion of debentures to shareholders :
1. A debenture can be converted into shares only if it was originally issued as Fully convertible or Partially convertible debenture.
2. The shares to be issued on conversion may be issued at par or premium.
3. In case of fully convertible debentures, no DRR is required.
4. Orignal proceeds received on issue of debentures shall be utilized to calculate the number of shares to be issued.
Hope this helps
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Conditions on conversion of debentures to shareholders :
1. A debenture can be converted into shares only if it was originally issued as Fully convertible or Partially convertible debenture.
2. The shares to be issued on conversion may be issued at par or premium.
3. In case of fully convertible debentures, no DRR is required.
4. Orignal proceeds received on issue of debentures shall be utilized to calculate the number of shares to be issued.
Hope this helps
Keep posting
Regards