Question -
Answer -
Debentures that can be converted to equity shares after a specified time is called as Convertible Debenture. The time at which it can be converted to equity shares is mentioned when the debentures are issued. There are two types:
1. Partly convertible debentures: In this only a part of debenture is eligible to be converted into equity shares.
2. Fully convertible debentures: In this all of the debenture can convert to equity shares.