Debenture Redemption Reserve - in case of Compulsorily Convertible Debentures

[Sathyan Avinash]

Dear Professional Colleagues,

In case of a company (Private Limited) issuing Compulsorily Convertible Unsecured Debentures, whether the rules relating to creation and maintanance of Debenture Redemption Reserve would be applicable ?

Rule 7 (d) of the Companies (Share Capital and Debentures) Rules, 2014 prescribe that

"in case of partly convertible debentures, DRR shall be created in respect of non-convertible portion of debenture issue in accordance with this sub-rule."

In relevance with my query, there is no portion of NON-CONVERTIBLE DEBENTURES (100% mandatorily convertible).

Hence, I solicit your kind views.

With regards,

“THE PESSIMIST COMPLAINS ABOUT THE WIND; 

THE OPTIMIST EXPECTS IT TO CHANGE; 

THE REALIST ADJUSTS THE SAILS.”

~ WILLIAM ARTHUR WARD