Issue of application forms for securities
(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.
