Question

Which of the following Statements is/are Correct?

I- Non-convertible debentures fall under the debt category.

II- They cannot be converted into equity or stocks.

III- NCDs have a fixed maturity date.

A Only I Correct Answer Incorrect Answer
B Only II Correct Answer Incorrect Answer
C Only III Correct Answer Incorrect Answer
D I & II Correct Answer Incorrect Answer
E All of the above Correct Answer Incorrect Answer

Solution

Non-convertible debentures fall under the debt category. They cannot be converted into equity or stocks. NCDs have a fixed maturity date and the interest can be paid along with the principal amount either monthly, quarterly, or annually depending on the fixed tenure specified. They benefit investors with their supreme returns, liquidity, low risk and tax benefits when compared to that of convertible debentures.

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