Section 33: Issue of application forms for securities
This section is for ensuring companies provide investors with necessary information when issuing application forms for securities.
Penalty
(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.
The section, clause by clause
What the section says
In plain terms
(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:
A company must include an abridged prospectus with any application form for purchasing its securities, unless the form is for a genuine underwriting agreement or for securities not offered to the public.
provisoProvided that nothing in this sub-section shall apply if it is shown that the form of application was issued—
(1)(a)in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to such securities; or
(1)(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.
The company must give a copy of the prospectus to anyone who asks for it before the subscription list and offer close.
(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.
If a company fails to follow the rules in this section, it will be fined 50,000 rupees for each failure.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.