Document background
The Stock Buy Sell Agreement is a crucial document used in Indian corporate transactions to facilitate the transfer of shares between parties. It becomes necessary when shareholders wish to sell their stakes or when new investors seek to acquire shares in a company. The agreement ensures compliance with Indian corporate laws, including the Companies Act 2013, SEBI regulations, and tax laws, while protecting both buyers' and sellers' interests. It typically includes detailed provisions on share valuation, payment terms, representations and warranties, conditions precedent, and completion requirements. The document is particularly important in private companies where shares are not freely transferable and in situations involving strategic investments, exit arrangements, or corporate restructuring.
