Compulsorily Convertible Debenture(CCD). CCD is a hybrid security, which converts to equity after a given period.

Holders of CCDs receive interest on the debt component of the instrument, with the added advantage of equity on conversion. Interest is paid quarterly, half yearly, or yearly, as per the terms of the investment agreement.

Holders of CCDs will be included in the company’s cap table only when the security actually converts to equity.