Section 60 of the Companies Act, 2013
Section 60 of the Companies Act, 2013 deals with the registration of prospectus. Here's the detailed provision:
Section 60 – Registration of Prospectus
Filing before Issue: A copy of the prospectus must be filed with the Registrar before it is issued, signed by every person named therein as a director or proposed director, or by his authorized attorney.
Documents to Accompany Prospectus: The following must be filed along with the prospectus:
The consent of expert(s) (if any),
Copy of contracts mentioned in the prospectus,
If any person named as an auditor, legal adviser, banker, etc., their written consent,
Any other document as prescribed under the rules.
Registrar’s Certification: The Registrar shall not register any prospectus unless the above requirements are fulfilled. Once registered, a certificate to that effect will be issued.
Penalty for Contravention:
If a prospectus is issued without registration, the company and every person who is knowingly a party to the issue shall be liable under:
Penalty of ₹50,000, which may extend to ₹3,00,000 for each default.
Objective:
Section 60 ensures that the public and investors get access to verified and reliable information before subscribing to a company’s securities, safeguarding transparency and accountability.
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