Prospectus compliance penalty framework tightened by revising liability for issuing a prospectus in breach of company law requirements. Section 26 of the Companies Act, 2013 is proposed to be amended by substituting sub-section (9) to revise the consequence for issuing a prospectus in breach of that section. The amended provision makes both the company and every person who is knowingly a party to the issue of the non-compliant prospectus liable to a penalty. The change operates as a targeted penalty provision within the prospectus regime, linking enforcement to both the issuer and knowing participants in the contravention.