The Companies Act, 2013
Chapter-III Prospectus and allotment of Securities
Part I- Public Offer
Section 34: Criminal liability for misstatements in prospectus.
*34. Where a prospectus, issued, circulated or distributed under this Chapter, includes any statement which is untrue or misleading in form or context in which it is included or where any inclusion or omission of any matter is likely to mislead, every person who authorises the issue of such prospectus shall be liable under section 447:
Provided that nothing in this section shall apply to a person if he proves that such statement or omission was immaterial or that he had reasonable grounds to believe, and did up to the time of issue of the prospectus believe, that the statement was true or the inclusion or omission was necessary.
Reference
*Effective from 12.09.2013.
Access complete Bare Act here and Notification and Circular here.
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