Liability For Mis-Statement in Prospectus.pptx

Prospectus

1. Liability For Mis -Statement in Prospectus 1- Civil Liability [59] A person purchases any shares on the faith of the prospectus which carries an untrue statement he may claim compensation for losses. 2- Criminal Liability [60] Where a prospectus includes a mis -statement, every person who authorised its issue shall be punishable for a period upto two years or a fine upto RS.10,000/- or both.

2. Penalty for False Statement [492] A person who in any prospectus , makes a false statement shall be liable to a fine upto Rs . 500,000. Penalty for Fraudulently Inducing Persons to Invest Money [66] A person shall be punishable for an imprisonment upto three years or a fine upto Rs . 20,000/- or both if he includes or attempts to induce another person through promise which is false.