Write in brief the meaning of convertible debentures.

On the basis of conversion, debenture may be classified into two types i.e. convertible Debenture and non-convertible debentures. Those debentures which are issued with the Option of converting them into equity shares, preference shares or new debentures at the Will of the debenture holder after a certain period are called convertible debentures. After Converting the debentures into ordinary shares, the investors are also converted into the Owners of the company.

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