Section 33 of Companies Act, 2013 – Issue of application forms for securities

  • Updated Till : June 21, 2017

SECTION 33. ISSUE OF APPLICATION FORMS FOR SECURITIES

[Effective from 12th September, 2013 except sub-section (3)]

[Sub-section (3) is effective from 1st April, 2014]

(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 to enter into an underwriting agreement with respect to such securities; or

(b) in relation to securities which were not offered to the public.

(2) A copy of the prospectus shall, on a request being made by any person before the closing of the subscription list and the offer, be furnished to him.

(3) If a company makes any default in complying with the provisions of this section, it shall be liable to a penalty of fifty thousand rupees for each default.

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