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Partially Convertible Debenture (PCD)

What is 'Partially Convertible Debenture - PCD'

A type of convertible debenture, part of which will be redeemed by the issuing company after a specified period of time and part of which is convertible into equity or preference shares at the end of the specified period. The ratio of conversion for the partially convertible debenture is decided by the issuer when the debenture is issued.

Explaining 'Partially Convertible Debenture - PCD'

Any partial conversion will be optional at the hands of the debenture holder. Partially convertible debentures differ from fully convertible debentures, in which all of the instrument must be converted into equity.


Further Reading


Which developmentalism? A Keynesian–Institutionalist proposal
www.elgaronline.com [PDF]
… the election of various governments critical of neoliberalism in Latin America, and partly to the … the most frequent constraints on growth in countries with an internationally non-convertible currency: that … of aggregate demand because, lacking a system to finance public debt, it was …

The role of internal financial sources in firm financing and investment decisionsThe role of internal financial sources in firm financing and investment decisions
www.sciencedirect.com [PDF]
… the election of various governments critical of neoliberalism in Latin America, and partly to the … the most frequent constraints on growth in countries with an internationally non-convertible currency: that … of aggregate demand because, lacking a system to finance public debt, it was …

Liberalisation v. Regulation: An Appraisal of SEBI and its Guidelines for Investor ProtectionLiberalisation v. Regulation: An Appraisal of SEBI and its Guidelines for Investor Protection
heinonline.org [PDF]
… the election of various governments critical of neoliberalism in Latin America, and partly to the … the most frequent constraints on growth in countries with an internationally non-convertible currency: that … of aggregate demand because, lacking a system to finance public debt, it was …

Can Delegating Bank Regulation to Market Forces Really Work?Can Delegating Bank Regulation to Market Forces Really Work?
papers.ssrn.com [PDF]
… the election of various governments critical of neoliberalism in Latin America, and partly to the … the most frequent constraints on growth in countries with an internationally non-convertible currency: that … of aggregate demand because, lacking a system to finance public debt, it was …

Capital markets: Securities regulations, derivatives and debt marketsCapital markets: Securities regulations, derivatives and debt markets
search.proquest.com [PDF]
… the election of various governments critical of neoliberalism in Latin America, and partly to the … the most frequent constraints on growth in countries with an internationally non-convertible currency: that … of aggregate demand because, lacking a system to finance public debt, it was …



Q&A About Partially Convertible Debenture (PCD)


What is partly convertible debentures?

PCDs are debentures which are convertible, normally into equity shares, by notice of the issuer in the future. The ratio of the conversion is decided by the issuer.

What is convertible and nonconvertible debentures?

Debentures are long term debt instruments which are not backed by any form of collateral. The difference between convertible and non-convertible is whether they can be transferred into shares or equity in the company.

What is meant by convertible debentures?

Convertible debentures mean long-term debts that can be transformed into equity shares in the company.

What is triple option convertible debentures?

The Triple Option Convertible Debentures (TOCDs) were an innovative financial instrument and India's largest made available to the public at the time.

How does a convertible debenture work?

At a specific time, the debenture will be exchangeable for stock, although the rate of exchange is up to the issuer.

What is CCD in investment?

A compulsory convertible debenture (CCD) is a a convertible debenture that must be converted to stock by a certain date. is a type of bond which must be converted into stock by a specified date.

What are optionally convertible debentures?

These debt securities allow an issuer or corporation to raise capital The issuer pays the investor interest till the maturity date. The debenture can optionally be converted to shares.

Are Convertible Notes securities?

Yes

Is a convertible loan a security?

Yes

Are convertible securities debt or equity?

Debt that can be converted to equity

Do convertible bonds pay interest?

Yes

Do debentures pay interest?

Yes