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      Question

      If a prospectus has been issued with intent to defraud

      the applicants for the securities of a company or any other person or for any fraudulent purpose, every person shall be ______________________ for all or any of the losses or damages that may have been incurred by any person who subscribed to the securities on the basis of such prospectus.
      A Personally responsible Correct Answer Incorrect Answer
      B Personally liable, with limitation on liability Correct Answer Incorrect Answer
      C Personally responsible, without any limitation of liability Correct Answer Incorrect Answer
      D Liability as laid down under section 447 Correct Answer Incorrect Answer
      E Liable as per the decision of the Tribunal Correct Answer Incorrect Answer

      Solution

      Section 35.Civil liability for mis-statements in prospectus- (3) Notwithstanding anything contained in this section, where it is proved that a prospectus has been issued with intent to defraud the applicants for the securities of a company or any other person or for any fraudulent purpose, every person referred to in sub-section (1) shall be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by any person who subscribed to the securities on the basis of such prospectus.

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