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| Particulars | Convertible Notes | Compulsory Convertible debentures (CCD) |
|---|---|---|
| Pre-Requisites | Only a Private Limited company can issue | Only Private Limited companies can issue |
| You should be a recognised start-up by DIPP | No Such Condition | |
| Minimum amount to be subscribed by 1 person should be 25 lakhs or More | No Such Condition | |
| Requirement of Valuation Report | The valuation report is not required | The valuation report is not required if issued to domestic investors. Required if raised from foreign investors |
| Which One is Better | If issuing to foreign investors then Convertible notes should be preferred. | If issuing to domestic investors then CCD is the only option. |
| Option to Convert | The convertible notes are convertible in equity at the option of buyer. | These are compulsorily convertible in Equity Shares. |
