The capital market is characterized by a large variety of financial instruments. While equity and preference shares, fully convertible debentures (FCDs), non-convertible debentures (NCDs) and partly convertible debentures (PCDs) currently dominate, new instruments are being introduced. These include debentures bundled with warrants, participating preference shares, zero-coupon bonds, secured premium notes, etc. Equity based instruments are the most popular means of raising finance. In 1993-94, nearly three-fourths of the total resources raised from the public by the corporate sector were in the form of equity shares. Of the balance, 6% was of debt and 24% was convertible into equity.
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