Partly Convertible Debentures Law and Legal Definition

Partly convertible debentures are convertible debentures that are converted into equity shares in the future at notice of the issuer. Part of such debentures will be redeemed by the issuing company after a specified period of time and part of it will be convertible into equity or preference shares at the end of the specified period. The issuer decides the ratio for conversion, usually at the time of subscription.