Conversion option in debentures allowed without central approval when banks underwrite and conversion follows default after prior notice. Terms providing an option to convert debentures or loans into shares need no Central Government approval if the instruments are issued privately or by prospectus, a public financial institution or scheduled bank underwrites, subscribes to, or sanctions the issue or loan, required consent under the Capital Issues (Control) Act is obtained where applicable, and financial institutions set conversion terms considering the company's finances and market price, permitting conversion at par or at a limited premium; conversion by lenders is permitted only on company default and after advance notice.