Document background
The Preliminary Investment Memorandum is a crucial document in the Indian investment landscape, used when companies seek to raise capital from institutional or strategic investors. It serves as the first comprehensive presentation of the investment opportunity, combining mandatory disclosures required by SEBI and the Companies Act, 2013 with detailed business information. This document is typically prepared before formal investment discussions begin and forms the basis for initial due diligence. While not as detailed as a final placement memorandum, it must still comply with Indian securities laws and regulations, particularly regarding disclosure requirements and investor protection measures. The memorandum needs to balance providing sufficient information for investor evaluation while maintaining appropriate confidentiality and managing potential liability.
