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Forwarding forms of application for shares without enclosing copies of prospectuses - Companies Law - Letter No. F. 2/18/747/64,Extract Circular : Letter No. F. 2/18/747/64, dated 22 ‑ 9 ‑ 1964. Subject:- Forwarding forms of application for shares without enclosing copies of prospectuses Instances have come to the Government s notice where members of recognised Stock Exchanges, while issuing circular letters to their clients in respect of new issues, have forwarded forms of application without enclosing therewith copies of prospectuses as required under section 56(3)1. The requirements of section 56(3) are mandatory and any contravention of the provisions contained therein is punishable with fine which may extend to five thousand rupees. The Government have very carefully considered the matter in all its aspects and are of the firm opinion that no laxity in strict compliance of the legal provision should be permitted. With a view to avoiding prosecutions for such illegal practices being launched against the member‑brokers of the Exchanges, the desirability of strictly adhering to the mandatory provisions of law as well as of conforming to the rules, bye‑laws and regulations of the Exchange should be impressed upon them.
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