Section 376 Companies Act Explained: Punishment for fraudulently inducing persons to invest in any company — Punishment, Bail & Case Law | Nyaya

Statutory Content

What does Section 376 of Companies Act say?

If any person fraudulently induces any other person to invest in any company, he shall be punishable with imprisonment for a term which may extend to five years, or with fine which may extend to five lakh rupees, or with both.

Indian StandardSection 376, Companies Act, 2013

Bluebook (21st ed.)Companies Act, 2013, § 376 (India)

Court Pleading StandardSection 376 of the Companies Act, 2013

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

Criminal Liability

Punishment under Section 376 Companies Act

Imprisonment for 5 years, or fine of 5 lakh rupees, or both

Common Questions about Section 376 Companies Act

What is Section 376 of Companies Act?

Section 376 of the Companies Act, 2013 (Companies Act) defines and regulates "Punishment for fraudulently inducing persons to invest in any company". The section states: If any person fraudulently induces any other person to invest in any company, he shall be punishable with imprisonment for a term which may extend to five years, or with fine which...