Auditaudit Staff asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

SEC 34
Yes any party who authorises prospectus is covered in sec 34 and auditor is one of them. So he is covered. It says if fale , misleading statements are made in prospectus then punishment as per Sec 447
Sec 448
Sec 448 is general sections which says if misstatements , misleading reports , certificates etc are made anywhere under company act person will be punished as per Sec 447
So Sec 34 covers false things in prospectus and Sec 448 covers false things made under company act anywhere
Sec 447
Sec 447 give us penalty for fraud which may be covered under various sections such as 34 / 448 / 140(5) etc— Imprisonment Min 6M to Max 10 Years , if public interest is involved then Minimum is 3 years Fine Amount — Fin Fraud Amount — Max 3 times of fraud

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