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Who decides the amount of premium on redemption & period of conversion for debentures?
Company decides the amount of premium on redemption and period of conversion for debentures as the period of conversion which has been there in SEBI is restricted to only 36 months. If any conversion has to be made then the credit rating is required. The premium on redemption and period of conversion for debentures has to be stated clearly and it should be predetermined in the prospectus. The company is then free to determine the rate of interest which will be payable according to the company guidelines.
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