Question

Discuss the consequence of misstatements and fraudulent statement in a prospectus

Answer 1

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If a prospectus contains any untrue statement, every person who authorized the issue are punishable with fine up to Rs. ... Anyone who fraudulently (knowingly) makes any misstatement in the prospectus to induce persons to invest money in the company is punishable with imprisonment up to 5 years or with fine up to Rs.