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Funding instruments structured so the terms actually hold up.

CCPS, OCDs and other funding instruments designed and documented correctly — so the economic and control terms you agree to are enforceable, not just implied.

Updated Jul 2026Read 6 minReviewed by Founders Bridge
On this page +
  1. What this covers
  2. What's included
  3. How we deliver it
  4. Pricing
  5. FAQs
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The instrument you choose shapes control and economics for years

Compulsorily Convertible Preference Shares (CCPS), Optionally Convertible Debentures (OCDs) and other funding instruments each carry different implications for control, economics, conversion mechanics and tax treatment. Getting the structure wrong doesn't show up immediately — it shows up at the next round, or at exit, when the terms don't work the way anyone assumed.

We help structure the right instrument for your specific round — advising on CCPS vs OCD vs equity, drafting the conversion terms, liquidation preference and anti-dilution provisions clearly, and making sure the documentation actually reflects the commercial deal both sides agreed to.

Why instrument choice isn't just a legal detail

CCPS and OCDs carry materially different tax and regulatory treatment under Indian law, and different implications for how control and economics play out at conversion. This is a structuring decision, not a documentation formality.

What you get

What's included

A standard instrument design engagement includes:

Instrument selection

Guidance on CCPS, OCD or equity based on your round's specific commercial terms and investor requirements.

Conversion mechanics

Clear, unambiguous conversion terms — ratio, triggers and timing — drafted into the documentation.

Liquidation preference

Preference terms structured and reviewed for what they actually mean in an exit scenario.

Anti-dilution provisions

Broad-based or narrow-based anti-dilution terms reviewed and negotiated where relevant.

Regulatory compliance

Instrument structuring aligned with FEMA, Companies Act and RBI requirements as applicable.

Documentation review

Term sheet and definitive agreements reviewed to ensure they reflect the actual commercial deal.

Term sheet on the table and not sure about the instrument terms?

Let's review it before you sign, not after.

How it works

How we structure your funding instrument

1. Commercial terms review

We understand the round's commercial deal — valuation, control, economics — before recommending an instrument.

2. Structuring & drafting

The instrument is structured with clear conversion, preference and anti-dilution terms, reviewed against regulatory requirements.

3. Documentation & closing

Definitive documentation is reviewed to confirm it matches the agreed terms, ahead of closing.

Typical timeline

Instrument structuring typically runs alongside your round's negotiation timeline, from term sheet through to closing.

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Cost

Pricing

Pricing depends on round complexity and the number of instruments or investor classes involved. See our pricing page for indicative ranges, or get an exact, itemised quote in one call.

Answers

Frequently asked questions

What's the difference between CCPS and OCD?+
CCPS are preference shares that mandatorily convert to equity, typically used for priced equity rounds; OCDs are debt instruments with an option to convert, often used for structured or bridge financing — each has different tax and regulatory implications.
Do you draft the actual legal documents?+
We work alongside your legal counsel on structuring and commercial terms; definitive legal drafting is typically handled by your transaction lawyers, with our input on the financial and regulatory structuring.
Can you review terms an investor has already proposed?+
Yes, this is common — reviewing investor-proposed terms before you sign is one of the most valuable moments to bring us in.
Does instrument choice affect my tax position?+
Yes, significantly — CCPS, OCDs and pure equity carry different tax treatment, which is a key input into which structure makes sense for your round.

Get your funding instrument structured right, before you sign.

Clear conversion terms, correct regulatory treatment, no ambiguity later.

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