Document background
The Investment Owners Contract serves as a fundamental document in Indian corporate transactions, establishing the legal framework for investment relationships in private companies. This document is typically used when investors acquire significant ownership stakes, whether through primary investment or secondary purchases. It is essential for both domestic and foreign investments in Indian companies, ensuring compliance with Indian corporate law, SEBI regulations, and FEMA guidelines where applicable. The contract comprehensively addresses investment terms, shareholder rights, corporate governance, information rights, and exit mechanisms. It is particularly crucial in venture capital, private equity, and strategic investment scenarios, where multiple rounds of funding may occur and various investor rights need to be carefully balanced and protected.
