Document background
The Private Equity Shareholders Agreement is a fundamental document used in private equity transactions in India, typically executed when a PE investor acquires a significant minority or majority stake in a company. It serves as the primary governing document that regulates the relationship between the PE investor, the target company, and its existing shareholders, incorporating provisions compliant with Indian corporate law, SEBI regulations, and foreign investment rules. This agreement is essential for protecting investor rights, establishing governance mechanisms, and providing exit options while ensuring alignment with Indian regulatory requirements. The document becomes particularly crucial in cross-border transactions where foreign PE investors need to navigate Indian regulatory framework while securing their investment interests.
