Facts for Prelims (FFP)
Source: Economic Times
Context: The Competition Commission of India (CCI) has approved the International Finance Corporation’s (IFC) subscription to Compulsory Convertible Debentures (CCDs) of Napino Auto and Electronics Limited (Napino).
- IFC, established in 1956, aims to promote economic growth in developing countries by fostering private sector development.
Compulsory convertible debentures (CCDs) are debt instruments that are automatically and mandatorily converted into equity after a specific time period or when certain events occur.
CCDs are hybrid instruments that are debt when issued but are guaranteed to be converted into equity at a later date.
CCDs help companies repay debt without spending cash and benefit investors by offering fixed interest and later ownership of company shares.
