(3)No one shall issue any form of application for shares in or debentures of a company, unless the form is accompanied [by a memorandum containing such salient features of a prospectus as may be prescribed] which complies with the requirements of this section:[Provided that a copy of the prospectus shall, on a request being made by any person before the closing of the subscription list, be furnished to him:Provided further that] [ Substituted by Act 31 of 1988, Section 8, for " Provided that" (w.e.f. 31.5.1991).] this sub-section shall not apply if it is shown that the form of application was issued either-(a)in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to the shares or debentures; or(b)in relation to shares or debentures which were not offered to the public.If any person acts in contravention of the provisions of this sub-section, he shall be punishable with fine which may extend to [fifty thousand rupees] [Substituted by Act 53 of 2000, Section 17, for " five thousand rupees" (w.e.f. 13.12.2000). ].
