Repayment of non convertable debenture
This query is : Resolved
02 March 2025
Our company has accepted debenture from existing shareholders with the condition of convert the debenture into share in future now some of them are requested for resumption is it possible to redeem the debenture on request of debenture holders
02 March 2025
Redeeming debentures upon the request of debenture holders depends on the terms and conditions specified at the time of issuance.
If the debentures are convertible, they can be converted into shares as per the agreed terms. This process involves converting the debt obligation into equity, which typically requires a special resolution and approval from shareholders.
However, if debenture holders request redemption before the conversion option is exercised, it is generally not possible unless specified in the debenture agreement.
Non-convertible debentures are typically redeemed at maturity or as per the terms specified in the debenture agreement. Early redemption might not be possible unless the agreement allows for it.
If the debentures are convertible, they can be converted into shares as per the agreed terms. This process involves converting the debt obligation into equity, which typically requires a special resolution and approval from shareholders.
However, if debenture holders request redemption before the conversion option is exercised, it is generally not possible unless specified in the debenture agreement.
Non-convertible debentures are typically redeemed at maturity or as per the terms specified in the debenture agreement. Early redemption might not be possible unless the agreement allows for it.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ADVANCE PAYMENT OF ADVOCATE
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- Condonation . E-Verification of last year return .
- DIN reactivation
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- TDS Return Q1 FY 2026-27
- CREDIT NOTES WITHOUT GST
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
