Punishment for personation for acquisition, etc.,
Section 38 of Companies Act 2013
1. Any person who—
a. makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; or
b. makes or abets making of multiple applications to a company in different names or in different combinations of his name or surname for acquiring or subscribing for its securities; or
c. otherwise induces directly or indirectly a company to allot, or register any transfer of, securities to him, or to any other person in a fictitious name, shall be liable for action under section 447.
2. The provisions of sub-section (1) shall be prominently reproduced in every prospectus issued by a company and in every form of application for securities.
3. Where a person has been convicted under this section, the Court may also order dislodgement of gain, if any, made by, and seizure and disposal of the securities in possession of, such person.
4. The amount received through dislodgement or disposal of securities under subsection shall be credited to the Investor Education and Protection Fund.
This section came into forcefrom September 12, 2013
It provides that thosepersons who applies in fictitious name or makes multiple applications or otherwiseinduces companies to allot shares in fictitious names, shall be punishable forfraud.
It further provides thatCourt may order dislodgement of any gains and seizure and disposal ofsuch securities.