New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    When can Debentures be converted into shares?

    A At anytime Correct Answer Incorrect Answer
    B At the time of redemption Correct Answer Incorrect Answer
    C Before the time of redemption Correct Answer Incorrect Answer
    D No such option is available Correct Answer Incorrect Answer
    E At the discretion of the debenture-holder Correct Answer Incorrect Answer

    Solution

    Section 71. Debentures - (1) A company may issue debenture with an option to convert such debentures into shares, either wholly or partly at the time of redemption: Provided that the issue of debentures with an option to convert such debentures into shares, wholly or partly, shall be approved by a special resolution passed at a general meeting.   Snapshot - Topic covered in Live class of SEBI Legal Course ixamBee

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