In India’s dynamic private equity and venture capital landscape, anti-dilution protections have emerged as a vital economic safeguard for early-stage investors. Typically enshrined in term sheets and shareholder agreements, these provisions are intended to shield investors from the financial downside of valuation declines in subsequent funding rounds, ensuring that their equity stake is not unfairly […]
Around the world, shareholders’ agreements (“SHAs”) serve as a cornerstone for defining the commercial relationship and inter-se rights and obligations between the shareholders of a company. These agreements typically address various operational and management aspects such as governance, rights and obligations of shareholders, dispute resolution mechanisms, and importantly, restrictions on the transfer of shares, amongst
Introduction In a move aimed at providing clarity regarding the transfer and transmission of shareholding in investment advisors (“IAs”), research analysts (“RAs”) and Know Your Client Registration Agencies (“KRAs”), the Securities and Exchange Board of India (“SEBI”) has issued circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2024/164 dated December 27, 2024 (“Circular”). The Circular clarifies the respective scenarios wherein the
