According to section 63, where a prospectus contains an untrue statement, every person authorising its issue be punishable:
(i)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â With imprisonment for a term upto 2 years; or
(ii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â With fine upto Rs. 50,000; or
(iii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â With both imprisonment and fine
However, an expert is not criminally liable in respect of mis-statement in the prospectus.
5 Comments