Issuance of Debentures
Issuance of Debentures
Debentures allow a company to raise funds without diluting equity. They can be secured or unsecured, convertible or non-convertible, depending on the company’s needs. But issuing debentures requires proper valuation, creation of charge (if secured), board and shareholder approvals, and strict MCA filings. A compliant issuance protects both the company and its investors.
We handle the entire debenture issuance process so your fundraising is smooth, structured, and fully compliant.
What we do
Identify the right type of debenture (NCD, CCD, OCD, secured, unsecured)
Draft the offer letter and debenture terms
Coordinate valuation and pricing
Prepare board and shareholder resolutions
Create and register charges for secured debentures
File MGT-14, PAS-3, and CHG forms as needed
Update registers of debenture holders
Assist with redemption, interest payments, and future conversions
Why this matters
Debentures involve legal and financial commitments. Any mistake in documentation, pricing, or charge creation can lead to MCA penalties, lender disputes, or issues during audits and due diligence.
Frequently Asked Questions
Debt instruments issued by a company to raise funds, typically with a fixed interest rate and a defined repayment term.
Secured or unsecured
Non-Convertible Debentures (NCDs)
Compulsorily Convertible Debentures (CCDs)
Optionally Convertible Debentures (OCDs)
Board approval and shareholder approval (usually via special resolution).
Yes, especially for convertible debentures and when issuing to investors.
MGT-14, PAS-3 for allotment, and CHG-1/CHG-9 for secured debentures.