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Section 36 of the Companies Act 2013: Punishment for Fraudulently Inducing Persons to Invest Money

SECTION-36 (Punishment for Fraudulently Inducing Persons to Invest Money) under PART-I (Public Offer) of CHAPTER-III (Prospectus and Allotment of Securities) of the Companies Act, 2013

Any person who, either knowingly or recklessly makes any statement, promise or forecast which is false, deceptive or misleading, or deliberately conceals any material facts, to induce another person to enter into, or to offer to enter into,—

(a) any agreement for, or with a view to, acquiring, disposing of, subscribing for, or underwriting securities; or

(b) any agreement, the purpose or the pretended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities; or

(c) any agreement for, or with a view to, obtaining credit facilities from any bank or financial institution,

shall be liable for action under section 447.






Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link

(2) Section 36 of the Companies Act 2013 was notified by MCA Notification S.O. 2754(E) dated 12th September 2013 (w.e.f. 12th September 2013) - link







This page was last updated on 20th November 2016.

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