The full form of PCDs is Partly Convertible Debentures

Partly convertible debentures are convertible debentures that are converted into equity shares in the future at notice of the issuer. Part of such debentures will be redeemed by the issuing company after a specified period of time and part of it will be convertible into equity or preference shares at the end of the specified period. The issuer decides the ratio for conversion, usually at the time of subscription.

A debenture is a medium to long-term debt instrument used by large companies to borrow money at a fixed rate of interest. This fixed-income security is unsecured, meaning there is no collateral pledged to guarantee the interest payments and principal repayments. Thus, a debenture is backed by the full faith and credit of the issuer. If the company defaults or goes bankrupt, the debenture holder will get the invested funds back only after all secured creditors are paid.