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A debenture is basically an unsecured loan to a corporation. Often there is a provision to exchange this debt for corporate stock. Non-convertible debentures do not have this provision.

Non Convertible Debentures are relatively safer than stocks. In case the company winds up, claims of NCD holders will be superior to those holding other unsecured assets of the company such as stocks etc. In fact NCDs can be considered to be safer than Company Fixed Deposits as well.

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What is redeemable non convertible secured debentures?

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What is non convertible redeemable debenture?

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What is the secured redeemable non-convertible debenture?

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Why are the type of debentures?

Debentures are categorized based on various characteristics, such as security, convertibility, and redemption. Secured debentures are backed by collateral, while unsecured debentures rely on the issuer's creditworthiness. Convertible debentures can be transformed into equity shares, while non-convertible debentures cannot. Additionally, redeemable debentures have a fixed maturity date for repayment, whereas irredeemable debentures do not have a set repayment term.


Companies issued debentures in recent year?

1) Muthoot Finances announced the issue of Non-convertible Debentures for Rs 150 cr. 2) Reliance capital issued Rs 500 cr Non-convertible debentures. 3) Shriram Transport Finances announced the launch of its second secured redeemable non-convertible debentures issue to raise Rs 500 cr. 4) Tata Global Beverages said it raised Rs 325 cr in private placement of debentures.


What is the meaning of secured redeemable non convertible debentures?

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What is the difference between bearer debentures and convertible notes?

Differentiate between a bearer debentures and convertible notes


What is debentures and its types?

Debentures are long-term financial instruments used by companies to raise capital, representing a loan made by investors to the issuer. They typically pay a fixed rate of interest and are secured against the company's assets or may be unsecured. The main types of debentures include convertible debentures, which can be converted into equity shares; non-convertible debentures, which cannot be converted; and redeemable debentures, which are repayable after a specified period, as opposed to irredeemable debentures, which have no fixed maturity date.


What you mean by bearer debentures?

these debentures which give an option to their holder to convert them into equity or preference shares at specified rate of exchange after a certain period. when such debenture holders exercise the right of convertion, they cease to be lenders to the company and become its members. the convertible debentures may be fully convertible or partly convertible


What is the non convertible redeemeble debentures?

Non-convertible redeemable debentures (NCRDs) are fixed-income securities issued by companies that cannot be converted into equity shares. They provide investors with a fixed rate of interest over a specified period, and the principal amount is redeemable at maturity. Unlike convertible debentures, NCRDs do not offer the option to convert into shares, making them less risky but also potentially less rewarding in terms of capital appreciation. They are typically used by companies to raise funds while maintaining control over ownership.


What does OFCD stand for?

OFCD - optionally fully convertible debentures. these are the debentures that can be converted into equity at any time at the rate of interest decided by the company


How optional or compulsory convertible debentures work?

Convertible debentures are debt instruments that can be converted into a company's equity shares at a predetermined price after a specified period. They are typically issued by companies to raise capital while offering investors the potential for capital appreciation if the company's stock performs well. While compulsory convertible debentures require conversion into equity at maturity, optional convertible debentures allow investors to choose whether to convert or redeem them for cash, providing more flexibility. This feature appeals to investors seeking both fixed income and potential equity upside.