Document background
The Letter Of Intent Share Purchase Agreement is a crucial preliminary document used in Indian corporate transactions when one party intends to purchase shares in a company. It serves as a roadmap for the transaction, documenting the parties' initial understanding while maintaining flexibility for detailed negotiations. This document is typically used after initial discussions but before detailed due diligence and final agreement stages. It includes essential terms such as the proposed purchase price, number of shares, exclusivity period, and key conditions, while clearly stating which provisions are binding and non-binding. Under Indian law, particularly considering the Companies Act, 2013 and relevant SEBI regulations, this document helps establish serious intent while protecting both parties during the negotiation phase. It's particularly important in complex transactions where detailed due diligence and regulatory approvals are required before finalizing the share purchase.
