Allotment of Securities by Company (1) No allotment of any securities of a company offered to the public for subscription shall be made unless the amount stated in the prospects as the minimum amount has been subscribed and the sums payable on application for the amount so stated have been paid to and received by the company by cheque or other […]
Punishment for Personation for Acquisition, etc., of Securities. (1) Any person who— (a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; or (b) makes or abets making of multiple applications to a company in different names or in different combinations of his name or surname for acquiring
Action by Affected Persons. A suit may be filed or any other action may be taken under section 34 or section 35 or section 36 by any person, group of persons or any association of persons affected by any misleading statement or the inclusion or omission of any matter in the prospectus.
Section 36 of the Companies Act provides for Punishment for Fraudulently Inducing Persons to Invest Money which reads as follows: Punishment for Fraudulently Inducing Persons to Invest Money Any person who, either knowingly or recklessly makes any statement, promise or forecast which is false, deceptive or misleading, or deliberately conceals any material facts, to induce
Section 35 of the Companies Act 2013 provides for the provisions related to Civil Liability for Mis-statement in Prospectus which reads as follows: Civil Liability for Mis-statements in Prospectus (1) Where a person has subscribed for securities of a company acting on any statement included, or the inclusion or omission of any matter, in the prospectus which is misleading and has
Criminal Liability for Mis-statements in Prospectus Where a prospectus, issued, circulated or distributed under this Chapter, includes any statement which is untrue or misleading in form or context in which it is included or where any inclusion or omission of any matter is likely to mislead, every person who authorizes the issue of such prospectus shall be
Issue of Application Forms for Securities. (1) No form of application for the purchase of any of the securities of a company shall be issued unless such form is accompanied by an abridged prospectus: Provided that nothing in this sub-section shall apply if it is shown that the form of application was issued— (a) in connection with a bona fide invitation to a person
Section 32 of the Companies Act, 2013 provides for the provisions related to Red Herring Prospectus which reads as follows Red Herring Prospectus (1) A company proposing to make an offer of securities may issue a red herring prospectus prior to the issue of a prospectus. (2) A company proposing to issue a red herring prospectus under sub-section (1) shall file it with the Registrar at least
Section 31 of Companies Act 2013 read as follows: Shelf Prospectus (1) Any class or classes of companies, as the Securities and Exchange Board may provide by regulations in this behalf, may file a shelf prospectus with the Registrar at the stage of the first offer of securities included therein which shall indicate a period not exceeding one year as the period of
Advertisement of Prospectus Where an advertisement of any prospectus of a company is published in any manner, it shall be necessary to specify therein the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and the names of the signatories to the memorandum and the number of shares subscribed for by them, and
CA Bhuvnesh Kumar Goyal
Chartered Accountants
cabkgoyal@gmail.com
9971782649
Ph: 9971782649
E: cabkgoyal@gmail.com
