(1)No form of application for the purchase of any of the securities of a company shall be issued unless such form is accompanied by an abridged prospectus:Provided that nothing in this sub-section shall apply if it is shown that the form of application was issued —(a)in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to such securities; or(b)in relation to securities which were not offered to the public.(2)A copy of the prospectus shall, on a request being made by any person before the closing of the subscription list and the offer, be furnished to him.(3)If a company makes any default in complying with the provisions of this section, it shall be liable to a penalty of fifty thousand rupees for each default.
