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

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  • Liberalisation v. Regulation: An Appraisal of SEBI and its Guidelines for Investor Protection – [PDF]
  • Can Delegating Bank Regulation to Market Forces Really Work? – [PDF]
  • Capital markets: Securities regulations, derivatives and debt markets – [PDF]