Issuance of CCD
Issuance of CCD
Compulsorily Convertible Debentures (CCD) are a popular instrument for raising funds without immediate dilution. They function like debt initially but convert into equity after a fixed period or event. CCDs are widely used in startup funding, private investments, and structured capital raising. But issuing CCDs requires valuation, proper agreements, approvals, charge creation (if secured), and strict MCA and FEMA compliance.
We handle the entire CCD issuance process so your fundraising remains structured, compliant, and investor-friendly.
What we do
Structure CCD terms including conversion ratio, interest, and timelines
Coordinate valuation from a registered valuer
Draft the Share Subscription Agreement (SSA) and Debenture Agreement
Prepare board and shareholder resolutions
File MGT-14 and PAS-3 with MCA
Manage FEMA filings (FC-GPR) for foreign investors
Update the Register of Debenture Holders and cap table
Support during audits, investor queries, and due diligence
Why this matters
CCDs involve long-term commitments. Any mistake in pricing, conversion terms, or filings can affect investor rights and trigger MCA or RBI penalties. Clean documentation keeps your capital structure strong and future funding rounds smooth.
Frequently Asked Questions
Compulsorily Convertible Debentures that automatically convert into equity after a predetermined time or event.
They allow companies to raise funds without immediate dilution while giving investors clarity on future conversion terms.
Yes. A registered valuer must determine fair value for pricing and conversion.
Board approval and special resolution of shareholders.
MGT-14 for resolutions, PAS-3 for allotment, and FC-GPR for foreign investments.