Section 388: Provisions as to expert’s consent and allotment
This section regulates the issuance of prospectuses in India by foreign companies, requiring expert consent and compliance with certain provisions.
The section, clause by clause
What the section says
In plain terms
(1)No person shall issue, circulate or distribute in India any prospectus offering for subscription in securities of a company incorporated or to be incorporated outside India, whether the company has or has not been established, or when formed will or will not establish, a place of business in India,—
A company outside India cannot issue a prospectus in India if an expert's statement is included without their written consent, or if the prospectus does not make all persons bound by certain provisions when an application is made.
(1)(a)if, where the prospectus includes a statement purporting to be made by an expert, he has not given, or has before delivery of the prospectus for registration withdrawn, his written consent to the issue of the prospectus with the statement included in the form and context in which it is included, or there does not appear in the prospectus a statement that he has given and has not withdrawn his consent as aforesaid; or
(1)(b)if the prospectus does not have the effect, where an application is made in pursuance thereof, of rendering all persons concerned bound by all the provisions of sections 33 and 40, so far as applicable.
(2)For the purposes of this section, a statement shall be deemed to be included in a prospectus, if it is contained in any report or memorandum appearing on the face thereof or by reference incorporated therein or issued therewith.
A statement is considered part of a prospectus if it appears on the face of the prospectus, in a report or memorandum, or is referenced or issued with it.
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.
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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.