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33 Issue of application forms for securities.

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CHAPTER III

Section 33 of Companies Act 2013

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.

Short Notes:

·        The completesection came into force from 12th September, 2013. Sub-section (3) came intoforce from April 1, 2014.

·        It provides thatevery form of application issued for purchase of any securities of a companyshall be accompanied by an abridged prospectus. If a company makes any default,the company shall be punishable with fine.

 

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