This agreement restricts itself only to the sale and purchase of shares where a company promises to sell a given number of shares to an investor at a certain price.
You need it as it serves as an evidence of your title over the stock and save you a lot of legal hassle along with preventing any dispute in future.
This agreement becomes enforceable as soon as it is signed by all parties concerned and is printed on a Non-Judicial stamp paper which vary as per state law.
Use this agreement if
You are an investor interested in buying shares from a company.
You represent a company which is interested in selling shares.