Compulsory Convertible Debentures | 16 May 2024

Source: PIB

The Competition Commission of India (CCI) has approved subscription to Compulsory Convertible Debentures (CCDs) of Napino Auto and Electronics Limited by International Finance Corporation (IFC).

• A Compulsory Convertible Debenture is a Bond that must be converted into Equity at its maturity date or when certain events occur. It is a mix of debt and equity features
  • Here conversion is mandatory, unlike in the case of optional convertible debentures where the investor has the choice to convert.
• CCDs are often used by startups and growth-stage companies that are not yet ready to give up equity but need capital for growth.
• IFC is an international organisation, established in 1956 to further economic growth in its developing member countries by promoting private sector development.
  • It is a member of the World Bank Group.
• CCI is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.

Read More: Competition Commission of India (CCI)