Document background
The Investment Commitment Agreement serves as a crucial legal document in Indian corporate transactions, establishing the framework for capital investment in companies. This agreement is typically used when investors have agreed in principle to invest but need to formalize their commitment subject to certain conditions being met. The document comprehensively covers the investment terms, valuation, conditions precedent, representations and warranties, and various rights and obligations of the parties involved. It ensures compliance with Indian corporate laws, securities regulations, and foreign investment rules (where applicable), while providing necessary protections for both investors and investees. The agreement is particularly important in staged investments or when there is a time gap between investment commitment and actual fund transfer.
