Optionally convertible unsecured debentures

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can anybody solve my query please?

 

Can a private limited company issued optionally convertible unsecured debentures to an individual from whom they have take loan.?  Is it fall under deposit? because under Co. (Acceptance of Deposit) 1975 only secured convertible debentures are exempt.

 

We are issuing debentures to only one individual.

 

Please help

 

Thank you

vishakha

Replies (1)

I feel there is no problem.....

 

If the issue is to members, directors or their relatives and to a small group of people less than 50,

then it is very much permissible (in my limited knowledge)...


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