Question

Convertible debentures are ______.

Options

• converted into 'term loan' after a certain period of time.

• converted into new debentures after its maturity.

• converted into equity shares and/or new debentures after a certain period of time.

• converted into preference shares after its maturity.

Answer 1

Convertible debentures are converted into equity shares and/or new debentures after a certain period of time.

Explanation:

Convertible debentures can be converted into equity shares or other debentures according to the terms of issue after a specified period.