All Countries
Mergers & Acquisitions
Stock Subscription Agreement

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 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:

Stock Subscription Agreement

"I need a Stock Subscription Agreement for my tech startup based in Bangalore, where a US-based venture capital firm will subscribe to 15% of our company's shares in Series A funding, with completion expected by March 2025 and including standard anti-dilution and board nomination rights."

Celebrated by
Collaborations with
Investors
Document background
The Stock Subscription Agreement is a crucial document in Indian corporate transactions, used when a company issues new shares to raise capital from investors. It serves as the primary legal instrument governing the subscription of shares, typically employed in private placements, preferential allotments, or investment rounds. The agreement must comply with various Indian regulations, including the Companies Act, 2013, SEBI guidelines, and foreign investment rules if applicable. It contains detailed provisions about the share issuance, valuation, investor rights, and completion procedures, while also incorporating necessary safeguards for both the issuing company and the subscribers. This document is particularly important in the current Indian business landscape where companies frequently seek capital infusion for growth and expansion.
Suggested Sections

1. Parties: Identifies the company issuing shares and the subscriber(s)

2. Background: Explains the context of the share subscription and the company's capital structure

3. Definitions: Defines key terms used throughout the agreement

4. Subscription and Payment: Details of shares being subscribed, price per share, and payment terms

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

6. Completion: Process and requirements for closing the transaction

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

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

9. Covenants: Ongoing obligations of the parties

10. Indemnification: Provisions for compensation in case of breach or misrepresentation

11. Termination: Circumstances under which the agreement can be terminated

12. Confidentiality: Obligations regarding confidential information

13. Notices: Process for formal communications between parties

14. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution

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

Optional Sections

1. Tag-Along Rights: Rights of minority shareholders to join in sale of shares by majority shareholders

2. Drag-Along Rights: Rights of majority shareholders to force minority shareholders to join in sale

3. Anti-Dilution Protection: Protection against dilution of shareholding in future rounds

4. Board Nomination Rights: Rights to nominate directors to the company's board

5. Information Rights: Rights to receive periodic financial and operational information

6. Pre-emptive Rights: Rights to participate in future share issuances

7. Lock-in Provisions: Restrictions on transfer of shares for a specified period

8. Exit Rights: Provisions regarding IPO, strategic sale, or other exit mechanisms

9. FCPA/Anti-corruption Provisions: Required for foreign investors or cross-border transactions

Suggested Schedules

1. Schedule 1 - Share Capital Structure: Details of company's existing share capital and shareholding pattern

2. Schedule 2 - Subscription Details: Specific details of shares being subscribed, including class, numbers, and price

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

4. Schedule 4 - Company Warranties: Detailed company representations and warranties

5. Schedule 5 - Completion Requirements: Detailed list of documents and actions required at completion

6. Schedule 6 - Corporate Information: Key corporate information including directors, officers, and material contracts

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

8. Appendix B - Shareholders' Resolution: Copy of shareholders' resolution, if required

9. Appendix C - Form Requirements: Templates of required regulatory forms (e.g., PAS-4, PAS-5)

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
Articles of Association
Board
Business Day
Companies Act
Completion
Completion Date
Conditions Precedent
Confidential Information
Consideration
Director
Encumbrance
Equity Shares
Financial Year
Fully Diluted Basis
Governmental Authority
INR
Intellectual Property Rights
Law
Material Adverse Effect
Memorandum of Association
Ordinary Course of Business
Party/Parties
Person
Preference Shares
Purchase Price
RBI
Related Party
Relative
SEBI
Securities
Shareholders
Shareholders' Agreement
Share Capital
Subscription Shares
Subscription Price
Subsidiaries
Tax
Transaction Documents
Transfer
Warranties
Relevant Industries

Technology

Financial Services

Manufacturing

Healthcare

E-commerce

Real Estate

Infrastructure

Renewable Energy

Consumer Goods

Telecommunications

Education

Professional Services

Biotechnology

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Compliance

Corporate Secretarial

Investment

Treasury

Board of Directors

Executive Management

Mergers and Acquisitions

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Company Secretary

General Counsel

Legal Director

Corporate Lawyer

Investment Manager

Private Equity Manager

Venture Capital Manager

Compliance Officer

Corporate Finance Manager

Investment Banker

Director of Business Development

Board Member

Managing Director

Finance Director

Industries
Companies Act, 2013: Primary legislation governing company operations, share capital, issuance of shares, corporate compliance requirements, and shareholder rights
Securities Contracts (Regulation) Act, 1956: Regulates securities markets and trading, including the issuance and transfer of securities
SEBI Act, 1992: Establishes SEBI's regulatory framework and powers over securities markets, including share issuance and investor protection
Indian Contract Act, 1872: Provides the fundamental principles of contract formation, validity, and enforcement
Foreign Exchange Management Act, 1999: Regulates foreign investment in Indian companies and cross-border transactions
Income Tax Act, 1961: Governs taxation aspects of share transfers, including capital gains and share pricing requirements
SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018: Specifies requirements for public offerings and private placements of securities
Indian Stamp Act, 1899: Governs stamp duty requirements on share subscription and transfer documents
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

Stock Buy Back Agreement

An Indian law-governed agreement detailing terms and conditions for a company's repurchase of its own shares from shareholders, ensuring compliance with Companies Act and SEBI regulations.

find out more

Stock Buy Sell Agreement

An Indian law-governed agreement setting out terms and conditions for the purchase and sale of shares between parties, including price, warranties, and completion mechanics.

find out more

Right Of First Refusal Stock Purchase Agreement

An Indian law-governed agreement granting preferential rights to purchase company shares before they can be sold to third parties, with detailed transfer procedures and valuation mechanisms.

find out more

Employee Stock Purchase Agreement

An Indian law-governed agreement enabling eligible employees to purchase company shares through systematic payroll deductions under specified terms and conditions.

find out more

Share Subscription Agreement And Share Purchase Agreement

An Indian law-governed agreement combining share subscription for new shares and purchase of existing shares, detailing terms for investment and share transfer.

find out more

Share Block Sale Agreement

An Indian law-governed agreement for the transfer of a substantial block of shares between parties, outlining sale terms, conditions, and completion requirements.

find out more

Share Purchase Agreement Between Shareholders

An Indian law-governed agreement facilitating share transfers between existing shareholders of a company, outlining terms, conditions, and compliance requirements.

find out more

Share Purchase Agreement And Shareholders Agreement

An Indian law-governed agreement combining share purchase terms and ongoing shareholder relationships, compliant with Companies Act, 2013 and SEBI regulations.

find out more

Founder Stock Purchase Agreement

An Indian law-governed agreement detailing the terms and conditions under which founders purchase shares in their company, including rights, obligations, and transfer restrictions.

find out more

Company Share Purchase Agreement

An Indian law-governed agreement facilitating the sale and purchase of company shares, outlining transaction terms, warranties, and completion mechanics.

find out more

Stock Subscription Agreement

An Indian law-governed agreement documenting terms for new share issuance and subscription between a company and investor(s), ensuring regulatory compliance and protecting parties' interests.

find out more

Stock Option Purchase Agreement

An Indian law-governed agreement detailing the terms of stock option grants to employees, including grant, vesting, and exercise conditions.

find out more

Share Sale And Purchase Agreement

An Indian law-governed agreement documenting the terms and conditions for the sale and purchase of shares in a company, including price, warranties, and completion mechanics.

find out more

Restricted Stock Purchase Agreement

An Indian law-governed agreement for the purchase of restricted company stock, detailing transfer restrictions and compliance requirements under Indian corporate laws.

find out more

Share And Asset Purchase Agreement

An Indian law-governed agreement for the combined purchase of company shares and specific assets, detailing transfer terms and regulatory compliance requirements.

find out more

Common Stock Purchase Agreement

An Indian law-governed agreement for the purchase and sale of common stock in an Indian company, detailing terms, conditions, and regulatory compliance requirements.

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.