Following acts are punishable with imprisonment for a term extending to five years: (i) making an application to a company for acquiring or subscribing for, any shares therein under a fictitious name; or (ii) making a company to allot or register any transfer of shares therein to any other person in a fictitious name.
Also this section should be prominently reproduced both in the prospectus as well as in application forms for shares.
Intitial offer of securities to be in dematerialised form i certain cases (s. 68B). Every listed company, making initial public offer of any security for a sum of spaces ten crors or more, shall issue the same only in dematerialised form by complying with the requisite provisions of the Depositories Act,1996 and regulations made thereunder.
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