FULLY CONVERTIBLE DEBENTURES WITH INTEREST (OPTIONAL):

In this case there is no interest payment involved say for the first 6 months. Then the holder can exercise option and apply for securities at a premium without paying additional amount. However interest will be payable at a determined rate from the date of first conversion to second/final conversion and in lieu thereof equity shares are issued.

Upon conversion of each part, the face value stands reduced proportionately on the date of conversion.