Non Convertible Debentures Law and Legal Definition

Non convertible debentures are instruments that cannot be converted in to equity shares. Since non convertible debentures are non-convertible, they usually carry higher rates of interest. The debenture holder will have no present or future stake in the company due to the non-convertibility element. They will have a specified life term. At the end of the stipulated period the company redeems the debenture. Non-convertible debentures are backed by those assets which already not been pledged for some other loan(s).