Section 303 of the Companies Act, 2013
Section 303 of the Companies Act, 2013 relates to the penalty for fraudulently inducing persons to invest money in a company.
🔹 Section 303 – Penalty for Fraudulent Inducement
🟡 Key Provisions:
If any person fraudulently induces another person to invest money or deposit money in a company or its shares, debentures, or securities, by any false statement, misrepresentation, or deceptive conduct, then:
Such person shall be punishable with imprisonment for a term which may extend to 10 years, and
Also liable to pay a fine which may extend to the amount involved in the fraud.
✅ Objective:
To deter and penalize any fraudulent activities aimed at deceiving investors or the public for wrongful gain through companies.
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