51Ƶ

Equity Interest Purchase Agreement for India

Equity Interest Purchase Agreement Template for India

A comprehensive legal agreement governed by Indian law that documents the terms and conditions for the purchase and sale of equity interests (shares) in a company. The agreement includes detailed provisions covering the purchase price, payment terms, representations and warranties, conditions precedent, completion mechanics, and post-completion obligations. It incorporates specific requirements under Indian corporate law, including compliance with the Companies Act, 2013, securities regulations, and where applicable, foreign investment rules. The document also addresses tax implications, stamping requirements, and necessary regulatory approvals for effective transfer of ownership.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Equity Interest Purchase Agreement?

The Equity Interest Purchase Agreement is a crucial document used in Indian corporate transactions to facilitate the transfer of ownership in a company through the sale and purchase of shares. It is essential when acquiring or divesting equity stakes in private or public companies, whether for complete or partial ownership transfers. The agreement must comply with Indian legal requirements, including the Companies Act, 2013, securities laws, and foreign exchange regulations (if foreign investors are involved). It typically includes comprehensive details about the transaction structure, valuation, warranties, indemnities, and conditions precedent. The document is particularly important for protecting both buyers' and sellers' interests by clearly defining their rights, obligations, and the process for completing the share transfer. It also addresses regulatory compliance, tax implications, and post-completion commitments.

What sections should be included in a Equity Interest Purchase Agreement?

1. Parties: Identification of buyer, seller, and the target company with complete legal names and addresses

2. Background: Context of the transaction, including current ownership structure and purpose of the agreement

3. Definitions: Defined terms used throughout the agreement, including technical and financial terms

4. Sale and Purchase of Shares: Core transaction terms including number of shares, price, and payment terms

5. Conditions Precedent: Conditions that must be satisfied before completion of the transaction

6. Completion: Process and mechanics for closing the transaction, including timing and deliverables

7. Seller's Warranties: Representations and warranties regarding the shares, seller's capacity, and target company

8. Buyer's Warranties: Representations and warranties regarding buyer's capacity and authority

9. Pre-Completion Obligations: Parties' obligations between signing and completion

10. Post-Completion Obligations: Ongoing obligations after completion

11. Indemnification: Indemnity provisions for breach of warranties or other obligations

12. Confidentiality: Provisions regarding confidential information and public announcements

13. Notices: Process and details for formal communications between parties

14. Governing Law and Jurisdiction: Choice of Indian law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

What sections are optional to include in a Equity Interest Purchase Agreement?

1. Tag-Along Rights: Include when minority shareholders need protection in case of future share sales

2. Drag-Along Rights: Include when majority shareholders want the right to force minority holders to join in a sale

3. Non-Compete and Non-Solicit: Include when seller needs to be restricted from competing or soliciting employees

4. Earn-Out Provisions: Include when part of purchase price is contingent on future performance

5. Foreign Investment Compliance: Include when foreign buyers are involved, addressing FEMA compliance

6. Tax Indemnity: Include when specific tax risks need separate treatment from general indemnities

7. Employee Matters: Include when transaction affects key employees or employment terms

8. Intellectual Property Rights: Include when IP assets are significant to the transaction value

9. Real Estate Matters: Include when company owns significant real estate assets

10. Third Party Consents: Include when specific third-party approvals are required

What schedules should be included in a Equity Interest Purchase Agreement?

1. Details of Sale Shares: Complete description of shares being transferred including share certificate numbers

2. Disclosure Schedule: Exceptions and qualifications to the warranties

3. Company Information: Detailed information about the target company including corporate records

4. Financial Statements: Recent financial statements of the target company

5. Material Contracts: List and copies of important contracts of the target company

6. Intellectual Property: Details of IP rights owned or used by the company

7. Properties: Details of real estate and major assets owned by the company

8. Employee Information: Details of key employees and benefit plans

9. Pending Litigation: Details of ongoing legal proceedings

10. Completion Checklist: List of all documents and actions required for completion

11. Form of Transfer Deed: Template for share transfer forms required under Indian law

12. Corporate Authorizations: Required board and shareholder resolutions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

India

Publisher

Genie AI

Cost

Free to use

Find the exact document you need

Customer List Purchase Agreement

An Indian law-governed agreement for the sale and purchase of customer lists, including data protection compliance and usage terms.

Download

Brand Purchase Agreement

An Indian law-governed agreement for the sale and transfer of a brand, including its intellectual property rights and associated assets.

Download

Asset Purchase Agreement Employees

An Indian law-governed agreement for transferring business assets between entities with specific provisions for employee transfer and protection of their rights and benefits.

Download

Equipment Lease With Option To Purchase Agreement

An Indian law-governed agreement establishing terms for equipment leasing with a future purchase option, combining lease and potential sale provisions.

Download

Business Share Sale Agreement

An Indian law-governed agreement documenting the sale and purchase of business shares, including transfer terms, warranties, and regulatory compliance requirements.

Download

Share Sale Agreement

An Indian law-governed agreement documenting the terms and conditions for the transfer of shares between parties, ensuring legal compliance and protection of stakeholders' interests.

Download

Used Equipment Purchase Agreement

An Indian law-governed agreement for the sale and purchase of used equipment, detailing conditions, warranties, and ownership transfer terms.

Download

Software Asset Purchase Agreement

An Indian law-governed agreement for the purchase and transfer of software assets, including ownership rights and compliance requirements.

Download

Member Interest Purchase Agreement

An Indian law-governed agreement for the purchase and sale of membership interests in an LLP or private company, including terms of transfer and regulatory compliance requirements.

Download

Machinery Purchase Agreement

An Indian law-governed agreement for the purchase and sale of industrial machinery, detailing specifications, terms, and compliance requirements.

Download

Inventory Purchase Agreement

An Indian law-governed agreement establishing terms for regular inventory purchases between buyer and seller, including ordering, pricing, delivery, and quality requirements.

Download

Intellectual Property Asset Purchase Agreement

An Indian law-governed agreement for the purchase and sale of intellectual property assets, including detailed terms for transfer, warranties, and compliance requirements.

Download

Equity Interest Purchase Agreement

An Indian law-governed agreement for the purchase and sale of company shares, detailing terms, conditions, and regulatory compliance requirements for ownership transfer.

Download

Digital Asset Purchase Agreement

An agreement under Indian law governing the purchase and transfer of digital assets, including specifications, ownership rights, and compliance requirements.

Download

Asset Purchase Contract

An Indian law-governed agreement facilitating the transfer of ownership of specific assets from seller to purchaser, detailing terms, conditions, and completion requirements.

Download
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it