Definition
Compulsorily Convertible Debenture – A debt instrument, common in Indian intra-group financing, that must convert into equity shares of the issuer by a set date rather than being redeemed for cash, often carrying a token coupon (sometimes as low as 0.001%) since the real return is expected to come from conversion, not interest. Structurally closer to equity than debt for this reason, even though it sits as a financial liability on the books until it converts. Found In: Notes to Financial Statements (related-party transactions, borrowings)