Mandatory disclosure requirement: brokers must enclose prospectuses with share application forms or face statutory penalties under company law. Members of recognised stock exchanges issuing circulars for new share issues must enclose copies of the prospectus with forwarded application forms; compliance with the mandatory prospectus enclosure requirement under section 56(3) is obligatory and non compliance attracts statutory penal consequences. Exchanges should ensure members adhere to the statutory provision and exchange rules to avoid prosecutions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Mandatory disclosure requirement: brokers must enclose prospectuses with share application forms or face statutory penalties under company law.
Members of recognised stock exchanges issuing circulars for new share issues must enclose copies of the prospectus with forwarded application forms; compliance with the mandatory prospectus enclosure requirement under section 56(3) is obligatory and non compliance attracts statutory penal consequences. Exchanges should ensure members adhere to the statutory provision and exchange rules to avoid prosecutions.
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