51Ƶ

Short Term Investment Agreement Template for India

A Short Term Investment Agreement is a legally binding document governed by Indian law that establishes the terms and conditions for a temporary investment of capital between an investor and an investee company. The agreement comprehensively covers investment amount, duration, expected returns, exit mechanisms, and compliance requirements under Indian securities and corporate laws. It includes essential provisions for investor protection, company obligations, and regulatory compliance under the Securities and Exchange Board of India (SEBI) guidelines and the Companies Act, 2013, while ensuring adherence to Indian Contract Act principles.

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 Short Term Investment Agreement?

The Short Term Investment Agreement is utilized when parties seek to establish a temporary investment relationship, typically ranging from 6 months to 3 years, under Indian jurisdiction. This document is essential for businesses seeking short-term capital infusion while providing investors with defined exit timelines and return structures. It encompasses crucial elements such as investment terms, return calculations, regulatory compliance requirements (including SEBI regulations and Companies Act provisions), and protection mechanisms for both parties. The agreement is particularly relevant in the Indian market where short-term investments are common in various sectors, from startups to established businesses, and must comply with specific Indian regulatory requirements including foreign investment regulations if applicable.

What sections should be included in a Short Term Investment Agreement?

1. Parties: Identification of the investor(s) and investee company, including registration details and addresses

2. Background: Context of the investment, brief description of the investee company's business, and purpose of the investment

3. Definitions: Definitions of key terms used throughout the agreement

4. Investment Terms: Details of the investment amount, payment mechanism, and timeline for investment

5. Duration: Term of the investment and conditions for extension or early termination

6. Returns and Distribution: Structure of returns, calculation methodology, and payment schedule

7. Rights and Obligations: Key responsibilities and rights of both parties during the investment period

8. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

9. Events of Default: Circumstances constituting default and corresponding remedies

10. Exit Mechanism: Terms and process for investment exit or redemption

11. Confidentiality: Provisions for maintaining confidentiality of sensitive information

12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

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

14. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments

What sections are optional to include in a Short Term Investment Agreement?

1. Foreign Investment Compliance: Required when investor is a foreign entity, covering FEMA compliance and RBI regulations

2. Security: Optional section for cases where the investment is secured against specific assets

3. Tag-Along Rights: Optional protection for minority investors in case of stake sale

4. Information Rights: Detailed reporting requirements, useful for larger investments

5. Board Nomination: Required when investment terms include board representation rights

6. Non-Compete and Non-Solicit: Optional restrictions on parties' competitive activities

7. Force Majeure: Optional clause for unforeseen circumstances affecting investment performance

What schedules should be included in a Short Term Investment Agreement?

1. Schedule 1 - Investment Details: Detailed breakdown of investment amount, tranches, and payment schedule

2. Schedule 2 - Company Information: Corporate information, shareholding pattern, and capital structure

3. Schedule 3 - Returns Calculation: Detailed methodology for calculating investment returns

4. Schedule 4 - KYC Documents: List of required KYC documents and compliance certificates

5. Schedule 5 - Bank Account Details: Banking information for fund transfers

6. Appendix A - Board Resolution: Copy of board resolutions approving the investment

7. Appendix B - Compliance Certificates: Relevant regulatory and statutory compliance certificates

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

Document Type

Option Agreement

Cost

Free to use

Find the exact document you need

Mining Option Agreement

An agreement under Indian law granting exclusive rights to explore and potentially acquire mining rights for a specific mineral property, subject to Indian mining regulations.

Download

Forbearance Agreement Mortgage

An Indian law-compliant agreement that temporarily modifies mortgage terms for borrowers facing financial hardship, establishing revised payment arrangements while preserving the lender's security interests.

Download

Property Options Contract

An Indian law-governed agreement granting the right to purchase specified property at predetermined terms within a set timeframe.

Download

Options Account Agreement

An India-compliant agreement between broker and client establishing terms for options trading account operation under SEBI regulations.

Download

Option To Renew Contract

An Indian law-compliant agreement establishing terms and procedures for contract renewal options, governed by the Indian Contract Act.

Download

Option To Purchase In Lease Agreement

An Indian law-compliant agreement combining property lease terms with an exclusive option for the tenant to purchase the property during a specified period.

Download

Option To Renew Commercial Lease

An Indian law-compliant agreement granting and specifying terms for a commercial tenant's right to renew their existing lease.

Download

Option Agreement Contract

An Indian law-governed agreement granting one party the right to execute a future transaction under specified terms and conditions within a set timeframe.

Download

Property Purchase Option Agreement

An Indian law-governed agreement granting exclusive rights to purchase specified property within a defined period at a predetermined price.

Download

Land Purchase Option Agreement

An Indian law-governed agreement granting exclusive rights to purchase specified land within a set timeframe and price.

Download

Buy Back Option Contract

An Indian law-governed agreement granting the seller the right to repurchase an asset from the buyer under specified terms and conditions.

Download

Optional Service Contract

An Indian law-governed agreement establishing terms for optional, as-needed service provision between a service provider and recipient.

Download

Option Extension Agreement

An Indian law-governed agreement that extends the duration and potentially modifies terms of an existing option agreement between parties.

Download

Extend Lease Agreement

An Indian law-compliant agreement that extends an existing lease term while maintaining or modifying original lease conditions.

Download

Option Cancellation Agreement

An Indian law-governed agreement that terminates an existing option agreement between parties, outlining cancellation terms and mutual releases.

Download

Vehicle Lease Agreement With Option To Purchase

An Indian law-compliant agreement for vehicle leasing with a purchase option, covering lease terms and conditions for eventual vehicle ownership transfer.

Download

Restricted Share Agreement

An Indian law-governed agreement for issuing company shares with restrictions and vesting conditions, ensuring compliance with Companies Act and SEBI regulations.

Download

Option Sales Contract

An Indian law-governed agreement granting the right to buy or sell an asset at predetermined terms within a specified period.

Download

First Refusal Agreement

An Indian law-governed agreement granting one party the priority right to enter into a transaction before third parties, with specified procedures and conditions for exercise.

Download

Single Option Agreement

An Indian law-governed agreement granting one party the right to execute a specific transaction with another party under predetermined terms and conditions.

Download

Repurchase Option Agreement

An Indian law-governed agreement granting the right to repurchase specific assets under predetermined conditions and timeframes.

Download

Non Exclusive Option Agreement

An Indian law-governed agreement granting non-exclusive rights to exercise an option for future transactions or acquisitions, while preserving the grantor's freedom to offer similar options to others.

Download

Lease And Purchase Agreement

An Indian law-governed agreement combining property lease terms with a future purchase option, detailing transition from tenant to owner status.

Download

Equipment Lease Agreement With Option To Purchase

An Indian law-governed agreement for equipment leasing with a purchase option, defining lease terms, maintenance obligations, and purchase conditions.

Download

Company Equity Share Agreement

An Indian law-governed agreement establishing terms and conditions for company equity share ownership, transfer, or issuance, ensuring compliance with Companies Act, 2013.

Download

Cash Payment Agreement

An Indian law-governed agreement establishing terms and conditions for cash payment obligations, including payment schedule, compliance requirements, and regulatory considerations.

Download

Owner Financing Lease Purchase Agreement

An Indian law-governed agreement combining property lease terms with a purchase option and owner financing arrangements.

Download

Purchase And Lease Agreement

An Indian law-governed agreement combining property sale and immediate leaseback arrangements, typically used in commercial real estate transactions.

Download

Owner Finance Purchase Agreement

An Indian law-compliant agreement combining property purchase and seller financing terms, enabling direct property purchase with owner-provided financing.

Download

Lease Option Agreement Contract

An Indian law-governed agreement combining property lease terms with a future purchase option, structured under the Transfer of Property Act and Contract Act.

Download

Short Term Investment Agreement

An Indian law-governed agreement establishing terms for temporary capital investment, including investment amount, returns, and exit provisions.

Download

Seller Financing Purchase Agreement

An Indian law-governed agreement where the property seller provides purchase financing to the buyer, combining elements of both sale and loan agreements.

Download

Option Agreement Intellectual Property

An Indian law-governed agreement granting the right to acquire specified intellectual property rights within a defined period.

Download

Rental Agreement With Option To Purchase

An Indian law-governed agreement combining property rental terms with an option for the tenant to purchase the property under specified conditions.

Download

Option To Lease Agreement

An Indian law-governed agreement granting a potential tenant the exclusive right to lease a property within a specified timeframe under predetermined terms.

Download

Land Option Contract

An Indian law-governed agreement granting exclusive rights to purchase specified land within a set timeframe, subject to agreed terms and conditions.

Download

Lease With Option To Buy Contract

An Indian law-compliant agreement combining property lease terms with a future purchase option, establishing rights and obligations for both leasing and potential property acquisition.

Download

Option Agreement (Real Estate)

An Indian law-governed agreement granting exclusive rights to purchase specified real estate property at predetermined terms within a set timeframe.

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