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19 March 2026

CCDs vs OCDs Under The IBC: Can Debenture Holders Trigger Insolvency? (Video)

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In this episode of the Legal Podcast bite powered by IndiaLaw LLP, host Saijeet Mohanty explores the complex legal treatment of hybrid financial instruments such as Compulsorily Convertible Debentures...
India Insolvency/Bankruptcy/Re-Structuring
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In this episode of the Legal Podcast bite powered by IndiaLaw LLP, host Saijeet Mohanty explores the complex legal treatment of hybrid financial instruments such as Compulsorily Convertible Debentures (CCDs) and Optionally Convertible Debentures (OCDs) under the Insolvency and Bankruptcy Code, 2016.The episode explains whether investors holding such instruments can qualify as financial creditors and initiate insolvency proceedings against a company. Through landmark rulings including 'FCI Limited v. Sutanu Sinha & Anr.', 'Santosh Kumar v. ASK Trusteeship Services Pvt. Ltd.', and 'Pioneer Urban Land and Infrastructure Ltd. v. Union of India', the discussion clarifies the distinction between equity-linked investments and financial debt.

The podcast also highlights how regulatory frameworks under the Companies Act, 2013 and policies of the Reserve Bank of India shape the legal position of convertible instruments in insolvency proceedings.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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