How to issue Application forms for Securities What is the procedure Section 33 of Indian Companies Act 2013

Section 33 Issue of Application forms for Securities - Indian Companies Act 2013

As per Section 33 of Indian Companies Act 2013 no form of application for the purchase of any of the securities of the company shall be issued unless such form is accompanied by an abridged prospectus. Provision in the Companies Act 2013 related to issue of application forms for Securities is as under.

(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.