Single format · FV02-G4

Exit rights clause set, drafted for FEMA compliance

Ready-to-use format: Exit rights clause set, drafted for FEMA compliance.

Length
3 pages
Blanks to fill
21
Files
Word and PDF
Law stated to
12 September 2026

What it covers

  1. 1Exit rights clause set, drafted for FEMA complianceRule 9(5) · Rule 21(2)(c) · ss.67 to 70 · SEBI notification 03.10.201321 blanks

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Clause [__] of the Shareholders Agreement — Exit

Note on use. Each limb carries a note in italics explaining what it is doing and what would break it. Delete the notes before circulating. Where the Investor is resident in India and the Promoters are resident in India, limb 4 may be replaced by a fixed-price or IRR-linked put; in every other case it may not.

[__].1 EXIT LONGSTOP

The Company and the Promoters shall use their respective best efforts to provide the Investor with a full exit from its Securities on or before [Exit longstop date] (the “Exit Longstop Date”), by one or more of the following, in the following order of preference: (a) a Qualified IPO; (b) a Strategic Sale; (c) a Secondary Sale; (d) a Buy-Back; or (e) any other manner agreed in writing between the Company, the Promoters and the Investor.

Note: an obligation of efforts, not of result. An obligation to procure an exit at a stated price is the clause that fails.

[__].2 QUALIFIED IPO

28 more paragraphs and tables follow in the full format.

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