Document background
The Compulsory Convertible Debentures Agreement is a critical document used in Indian corporate finance transactions where companies seek to raise capital through instruments that initially function as debt but mandatorily convert to equity. This structure is particularly attractive for growth-stage companies and foreign investors due to its regulatory and tax advantages under Indian law. The agreement comprehensively covers the terms of debenture issuance, interest payments, conversion mechanics, investor rights, and regulatory compliance requirements. It's essential for ensuring adherence to various Indian regulations including the Companies Act 2013, SEBI guidelines, and FEMA regulations (for foreign investments). The document serves as the primary reference point for all stakeholders throughout the lifecycle of the CCDs, from issuance to conversion.
