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instruments · intermediate

Convertible debentures

Convertible debentures are debt instruments that can convert into equity shares on specified terms.

Fully or partly convertible debentures blend fixed-income features with equity upside.

Conversion price, ratio, and timeline are defined in the offer terms.

Until conversion, holders typically rank as creditors for the debt portion.

Indian companies use convertibles in private placements and some public offerings.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.