DEBENTURE

DEBENTURE -
A debenture is basically an unsecured loan to a corporation. A type of debt instrument that is not secured by physical asset. Debentures are backed only by the general creditworthiness and reputation of the issuer.
(i) Convertible Debentures : Any type of debenture that can be converted into some other security or it can be converted into stock.
(ii) Non-Convertibulity Debentures (NCB): Non Convertible Debentures are those that cannot be converted into equity shares of the issuing company, as opposed to Convertible debentures. Non-convertible debentures normally earn a higher interest rate than convertible debentures do.