Document background
The Sell And Buy Back Agreement is a sophisticated financial instrument used in Indian business and financial markets to facilitate temporary transfer of assets while maintaining an economic interest through a repurchase commitment. This document type is commonly used for financing arrangements, liquidity management, and strategic asset management. It finds application across various sectors, from financial institutions dealing with securities to companies seeking alternative financing arrangements for physical assets. The agreement must comply with Indian regulatory requirements, including RBI guidelines where applicable, and encompasses comprehensive provisions for both the initial sale and subsequent buyback, including pricing mechanisms, risk allocation, and settlement procedures. This document type is particularly relevant in the current Indian market context where businesses seek flexible financing solutions while maintaining long-term asset control.
