Section 68 - Penalty for fraudulently inducing persons to invest money - Companies Act, 1956

Penalty for fraudulently inducing persons to invest money [1] . 68. Any person who, either by knowingly or recklessly making any statement, promise or forecast which is false, deceptive or misleading, or by any dishonest concealment of material facts, induces or attempts to induce another person to enter into, or to offer to enter into (a) any agreement for, or with a view to, acquiring, disposing of, sub scribing for, or underwriting shares or debentures; or (b) any agreement the purpose or pretended purpose of which is to secure a profit to any of the parties from the yield of shares or debentures, or by reference to fluctuations in the value of shares or debentures; shall be punishable with imprisonment for a term which may extend to five years, or with fine which may extend to [2] [one lakh rupees], or with both. ------------------------------ Notes:- [1] Prosecution powers delegated to DCA and SEBI officials concurrently vide Notification No. GSR 727(E), dated 18-9-2000. [2] Substituted for "ten thousand rupees" by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000.