Convertible Debentures are those debentures which are convertible in equity shares after some specified time generally mentioned at the time of issue of such debentures. These convertible debentures are divided into two categories
(i) Partly Convertible Debenture: In this type of debenture only a part of such debenture is convertible in equity shares which is mentioned at the time of issue.
(ii) Fully Convertible Debenture :These are fully convertible into equity shares. It means in case of fully convertible debenture the whole amount of such debenture, is convertible in equity share after the period mentioned in the prospectus.