Section 38 — Punishment for personation for acquisition, etc., of securities

(1) Any person who—
(a) makes or abets making of an application in a fictitious name to a company for acquiring, or
subscribing for, its securities; or

1. Ins. by Act 1 of 2018, s. 9 (w.e.f. 9-2-2018).
2. Subs. by Act 22 of 2019, s. 8, for “delivery of a copy of the prospectus for registration” (w.e.f. 15-8-2019).

(b) makes or abets making of multiple applications to a company in different names or in different
combinations of his name or surname for acquiring or subscribing for its securities; or
(c) otherwise induces directly or indirectly a company to allot, or register any transfer of, securities
to him, or to any other person in a fictitious name,
shall be liable for action under section 447.
(2) The provisions of sub-section (1) shall be prominently reproduced in every prospectus issued by a
company and in every form of application for securities.
(3) Where a person has been convicted under this section, the Court may also order disgorgement of
gain, if any, made by, and seizure and disposal of the securities in possession of, such person.
(4) The amount received through disgorgement or disposal of securities under sub-section (3) shall be