As per Section 34 of Indian Companies Act 2013 every person who authorises a prospectus containing misstatement shall be liable under section 447 of the Act. Provision in the Companies Act 2013 related to Mis Statement in the Prospectus is as under.
Where a prospectus, issued, circulated or distributed under this
Chapter, includes any statement which is untrue or misleading in
form or context in which it is included or where any inclusion or
omission of any matter is likely to mislead, every person who
authorises the issue of such prospectus shall be liable under
section 447:
Provided that nothing in this section shall apply to a person if he
proves that such statement or omission was immaterial or that he had
reasonable grounds to believe, and did up to the time of issue of
the prospectus believe, that the statement was true or the inclusion
or omission was necessary.
How to execute bills of exchange etc Section 22 of Indian Companies Act 2013
Public offer of securities should be in dematerialized form. Section 29 of Indian Companies Act 2013
What is the punishment for personation etc of securities Section 38 of Indian Companies Act 2013
How to allot securities by Company What the is process Section 39 of Indian Companies Act 2013