Document background
The Equity Line Agreement is a sophisticated financing instrument used in the Indian market when companies seek flexible access to equity capital over time. This agreement type is particularly valuable for growing companies that need periodic capital injections but want to avoid the dilution and costs associated with a single large equity issuance. The document must comply with Indian securities laws, particularly SEBI regulations, Companies Act provisions, and, where applicable, foreign investment rules. It typically includes detailed mechanisms for share pricing, drawdown procedures, regulatory compliance requirements, and investor protections. The agreement is commonly used by both listed and unlisted companies, though the specific requirements and provisions vary based on the company's listing status and the nature of the investor (domestic or foreign).
