Distinguish between the following: 'Partly convertible debentures' and 'non-convertible debentures'.

'Partly convertible debentures' and 'non-convertible debentures' Partly Convertible Debentures (PCDs) may consist of two kinds namely -convertible and non-convertible. The convertible portion is to be converted into equity shares at the expiry of specified period. However, the non convertible portion is redeemed at the expiry of the stipulated period. If the conversion takes place at or after 18 months, the conversion is optional at the discretion of the debenture holder. While, non-convertible debentures do not carry the option of conversion into equity shares and are therefore redeemed on the expiry of the specified period or periods i.e total amount is redeemed by the issuer.