24/7 Chat Support
Got a question or concern? We’re just a message away and happy to help, completely free!
Frequently asked Questions
It’s a non-binding document outlining investment terms (e.g., valuation, equity, rights) under Companies Act, 2013, guiding SHA/SSA drafting.
Largely non-binding, except for clauses like confidentiality or exclusivity, per Indian contract law.
Parties draft binding agreements (e.g., SHA, SSA) and file ROC forms (e.g., PAS-3) within 30 days.
Yes, term sheets are flexible, allowing parties to adjust terms before binding agreements.
Valuation, equity stake, liquidation preferences, ROFR, tag-along and board rights
Non-binding term sheets don’t require stamp duty unless executed as binding on stamp paper.
A term sheet is investment-specific, detailing equity terms; an MOU is broader, for general business agreements.
It mitigates disputes over valuation, dilution or control by clarifying terms early.
It provides transparent, SEBI-compliant terms, building trust and clarity for investment decisions.
Novam Legal ensures Companies Act-compliant, investor-ready term sheets with expert negotiation support.
It aligns terms with Companies Act and SEBI, ensuring smooth ROC filings (e.g., PAS-3) and investor agreements.
