Procedure for conversion of Debentures into Shares:

1. Board Resolution: -A resolution for conversion is approved in the board meeting. The shareholders as well as debenture holders’ approval is taken for conversion. A special resolution is passed to that effect. A copy of special resolution is filed with the Registrar of companies within 30 days of its passing.

2. Letter of Option: -A letter of option is sent to debenture holders and one copy of the same is filed with SEBI. The secretary then verifies the consent sent by debenture holders for conversion.

3. Allotment of Shares: -Debenture is converted into equity shares. A notice of conversion is sent and debenture holders are asked to return debenture certificates. Secretary carries out allotment of shares to debenture holders in due course.

4. Changes in Register of Charges: -After allotment of shares, necessary changes are to be made in the Register of Charges. Company has to cancel the charges against assets which were created at the time of issue of debentures.