does not constitute a debenture in the
classic sense. Even a debenture which is only convertible at
option has been recognised as a hybrid debenture ... allotment. Further, it was stated that the Company
would convert Rs.40 of each convertible debentures into
share after 3 years and the balance
invest a sum of
Rs.10,01,142/- in secured non-convertible debentures of the said
Company, namely, M/s. Dawson Leasing Limited ... came to know that the aforesaid Company had
issued the non-convertible debentures in contravention of the Companies
Act, 1956 without creating any charge against
debentures issued or loan raised by the company to convert such debentures or loans into shares in the company: Provided that the terms of issue ... amount of the value of shares which such debentures or loans or part thereof has been converted into
value of the debentures held by it into equity shares. Each of the debenture-holders exercised the option to convert to the full extent ... total debentures of the value of Rs. 350 lakhs to be issued to UTI. The debentures would be convertible into equity shares at the rate
meeting approved a proposal to raise funds by
issue of convertible debentures for Rs. 920 crores. In the
said meeting it was also resolved ... Meeting to consider a
special resolution for the proposed issue of convertible
debentures. Applications were made to the Controller of
Capital Issues seeking sanction
Companies Act, 2013
71. Debentures.—
(1) A company may issue debentures with an option to convert such debentures into shares, either wholly or partly ... 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
issue of debentures. Each debenture costing Rs. 300 was having two parts, one of Rs. 200 each which was convertible into shares after a prescribed ... equity shares was entitled to 1 such debenture. The debentures were in two parts. Part A was convertible part of Rs. 25 lakhs which
debt
structures like partially convertible preference shares. The
regulator said only compulsory convertible preference shares
(CCPS) and compulsory convertible debentures (CCDS) would be
permitted since ... structures like
partially convertible preference shares and laid down a policy that
only compulsory convertible preference shares (COPS) and
compulsory convertible debentures (CCDs) would
assessee's argument that the expenditure relating to convertible part of the debentures were only covered by section 35D is erroneous.
(b) The learned ... appeal relating to inclusion of Rs. 200 lakhs of non-convertible debentures which were already allotted on 23-3-1992, and utilised for the purpose
neither a case where issue of equity shares or convertible/partly convertible debenture was involved. Before us is the case where expenditure was admittedly incurred ... High Courts referred to supra deals with issue of convertible/partly convertible debentures. In the case before us the issue relates to the expenditure
