All Countries
Commercial
Common Stock Subscription Agreement

Common Stock Subscription Agreement Template for India

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Common Stock Subscription Agreement

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

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Common Stock Subscription Agreement

"I need a Common Stock Subscription Agreement for a Series A investment round where a venture capital firm is investing INR 50 crores for 20% equity, including standard VC rights and board seat provisions, with closing expected by March 2025."

Celebrated by
Collaborations with
Investors
Document background
The Common Stock Subscription Agreement is essential for companies raising capital through equity investments in India. It is commonly used when a company wishes to issue new shares to investors, whether they are individual investors, venture capital firms, or institutional investors. The document must comply with Indian corporate law, particularly the Companies Act 2013, SEBI regulations for listed companies, and FEMA regulations for foreign investments. It typically includes critical information such as the number and price of shares being issued, payment terms, representations and warranties, and various conditions that must be met before the share issuance can be completed. This agreement is fundamental to protecting both the company's and investors' interests by clearly documenting the terms of the investment and ensuring regulatory compliance.
Suggested Sections

1. Parties: Identifies the Company and the Subscriber(s) with their complete legal names and addresses

2. Background: Explains the context of the share subscription, including company's authorized share capital and the subscriber's intention to invest

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. Subscription and Allotment: Details of the shares being subscribed to, including number, class, and price per share

5. Payment Terms: Specifies the subscription amount, payment method, and timeline for payment

6. Conditions Precedent: Lists conditions that must be satisfied before share allotment

7. Closing: Describes the closing process, including timing and deliverables

8. Company Representations and Warranties: Company's statements about its legal status, authority, and business condition

9. Subscriber Representations and Warranties: Subscriber's statements about their capacity and authority to enter into the agreement

10. Covenants: Ongoing obligations of both parties

11. Indemnification: Provisions for compensating parties for losses due to breaches

12. Confidentiality: Obligations regarding protection of confidential information

13. Notices: Process for formal communications between parties

14. Governing Law and Jurisdiction: Specifies Indian law as governing law and relevant jurisdiction for disputes

15. General Provisions: Standard boilerplate provisions including amendments, waivers, and severability

Optional Sections

1. Tag-Along Rights: Include when minority shareholders need protection in case of majority stake sale

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

3. Anti-Dilution Protection: Include when subscribers need protection against future dilution of their shareholding

4. Board Nomination Rights: Include when subscribers are to have rights to nominate directors

5. Foreign Investment Compliance: Include when subscribers include non-resident investors

6. Information Rights: Include when subscribers require specific rights to company information beyond statutory requirements

7. Exit Rights: Include when subscribers require specific exit mechanisms or IPO rights

Suggested Schedules

1. Schedule 1 - Company Information: Details of company incorporation, directors, share capital structure

2. Schedule 2 - Subscription Details: Detailed breakdown of shares being subscribed, including share certificate numbers and consideration

3. Schedule 3 - Conditions Precedent: Detailed list of conditions to be satisfied before closing

4. Schedule 4 - Closing Checklist: List of documents and actions required at closing

5. Schedule 5 - Company Warranties: Detailed company representations and warranties

6. Schedule 6 - Disclosure Schedule: Company's disclosures against the warranties

7. Appendix A - Board Resolution: Copy of board resolution approving the share issuance

8. Appendix B - Shareholders' Resolution: Copy of shareholders' resolution if required for the share issuance

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 | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Affiliate
Agreement
Applicable Law
Articles of Association
Board
Business Day
Closing
Closing Date
Companies Act
Company
Completion
Conditions Precedent
Confidential Information
Consideration
Control
Director
Encumbrance
Equity Shares
Financial Year
FEMA
Governmental Authority
INR
Intellectual Property Rights
Investment Amount
Investor(s)
Material Adverse Effect
Memorandum of Association
Party/Parties
Person
RBI
Regulatory Approvals
Related Party
Relative
SEBI
Securities
Shareholders
Shareholders' Agreement
Share Capital
Subscription Shares
Subscription Price
Subsidiary
Tax
Transaction Documents
Transfer
Warranties
Clauses
Recitals
Definitions
Subscription
Share Allotment
Payment Terms
Conditions Precedent
Closing Requirements
Representations and Warranties
Company Covenants
Investor Covenants
Information Rights
Board Rights
Transfer Restrictions
Tag-Along Rights
Drag-Along Rights
Pre-emptive Rights
Anti-dilution
Exit Rights
Confidentiality
Non-Competition
Indemnification
Force Majeure
Term and Termination
Dispute Resolution
Governing Law
Jurisdiction
Notices
Assignment
Severability
Entire Agreement
Amendment
Waiver
Costs and Expenses
Further Assurance
Counterparts
Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Real Estate

E-commerce

Telecommunications

Consumer Goods

Energy

Infrastructure

Education

Agriculture

Retail

Media and Entertainment

Biotechnology

Relevant Teams

Legal

Finance

Corporate Development

Compliance

Executive Leadership

Investment

Company Secretarial

Treasury

Corporate Strategy

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Secretary

Investment Manager

Legal Counsel

Corporate Lawyer

Investment Banker

Private Equity Manager

Venture Capital Manager

Compliance Officer

Company Secretary

Director of Finance

Head of Legal

Investment Associate

Corporate Development Manager

Industries
Companies Act, 2013: Primary legislation governing company formation, share capital, issuance of shares, rights and duties of shareholders, and corporate governance requirements in India
Securities Contracts (Regulation) Act, 1956: Regulates securities trading and establishes framework for stock market operations and securities transactions
SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018: Governs the issuance of securities, particularly relevant if the company is or plans to be listed, including disclosure requirements and investor protection measures
Indian Contract Act, 1872: Provides the basic legal framework for contract formation and enforcement, including essential elements of valid contracts
Foreign Exchange Management Act (FEMA), 1999: Regulates foreign investment in Indian companies and transfer of shares between residents and non-residents
Indian Stamp Act, 1899: Governs the stamp duty requirements for share subscription agreements and related documents
Income Tax Act, 1961: Relevant for tax implications of share issuance, including provisions related to share premium and transfer pricing if applicable
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Advance Subscription Agreement

An Indian law-governed agreement for advance funding in exchange for future share issuance, typically used in early-stage investments.

find out more

Private Equity Fund Subscription Agreement

An Indian law-governed agreement detailing an investor's subscription and capital commitment to a private equity fund, including investment terms and regulatory compliance requirements.

find out more

Subscription Service Contract

An Indian law-governed agreement establishing terms and conditions for subscription-based services, including service delivery, payment terms, and compliance requirements.

find out more

Short Form Subscription Agreement

A concise agreement governed by Indian law that establishes terms for subscription-based services, suitable for standardized service offerings.

find out more

Fund Subscription Agreement

A legally binding agreement under Indian law that governs an investor's subscription to units or shares in an investment fund, subject to SEBI regulations and securities laws.

find out more

Common Stock Subscription Agreement

An Indian law-governed agreement outlining terms and conditions for investors to purchase a company's common stock, subject to Companies Act 2013 requirements.

find out more

Software As A Service Subscription Agreement

An Indian law-governed agreement establishing terms for cloud-based software service provision, including service levels, data protection, and compliance requirements.

find out more

Convertible Note Subscription Agreement

An Indian law-governed agreement for issuing convertible notes to investors, detailing investment terms, conversion rights, and regulatory compliance requirements.

find out more

Unit Subscription Agreement

An Indian law-governed agreement documenting an investor's subscription to units in an investment fund, including key terms and regulatory compliance requirements.

find out more

Monthly Subscription Contract

An Indian law-governed agreement establishing terms for monthly subscription services, including payment terms, service standards, and compliance requirements.

find out more

Note Subscription Agreement

An Indian law-governed agreement detailing terms and conditions for investors' subscription to company-issued notes, including subscription amount, interest rates, and regulatory compliance requirements.

find out more

Subscription Service Agreement

An Indian law-governed agreement establishing terms for subscription-based service delivery, including payment terms, service levels, and mutual obligations.

find out more

Subscription And Shareholders Agreement

An Indian law-governed agreement that regulates share subscription terms and ongoing shareholder relationships, combining investment and governance provisions.

find out more

Loan Note Subscription Agreement

An Indian law-governed agreement documenting terms for investment in company-issued loan notes, including subscription, interest, repayment, and security terms.

find out more

Shareholder Subscription Agreement

An Indian law-governed agreement detailing terms and conditions for new share subscription, including share details, price, and investor rights.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’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; Genie’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

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

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

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.