Punishment for personation for acquisition, etc., of securities
Section 38 of the Companies Act, 2013 deals with punishment for personation for acquisition, etc., of securities. Any person who-- (a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; The Act came into force on 01 Apr 2014.
(1) Any person who--
(a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; or
(b) makes or abets making of multiple applications to a company in different names or in different combinations of his name or surname for acquiring or subscribing for its securities; or
(c) otherwise induces directly or indirectly a company to allot, or register any transfer of, securities to him, or to any other person in a fictitious name,
shall be liable for action under section 447.
(2) The provisions of sub-section (1) shall be prominently reproduced in every prospectus issued by acompany and in every form of application for securities.
(3) Where a person has been convicted under this section, the Court may also order disgorgement of gain, if any, made by, and seizure and disposal of the securities in possession of, such person.
(4) The amount received through disgorgement or disposal of securities under subsection (3) shall becredited to the Investor Education and Protection Fund.
Section 38, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 1
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… of shares by the Respondents as null and void in a petition under Section 111A has to be examined in the context of the scope and ambit of the rectificatory jurisdiction of the Tribunal and, in particular, the specific wordings of the said provision. 18. The rectificatory powers of a Board/Company Court under Section 38 of the Companies Act, 1913, then under Section 155 of the 1956 Act, followed by Section 111A introduced by the 1996 Amendment to the 1956 Act, and finally, Section 59 of the 2013 Act, demonstrate that its essential ingredients have remained the same. It is a summary power to carry out corrections or rectifications …
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… reversed the decision of the trial Judge and decided the appeal against the Company on two grounds only, namely, ( 1 ) that the Company had by the conduct of its two members abandoned its right to challenge the forfeiture; and ( 2 ) that the form of the order could not be supported as one validly made under Section 38 of the Companies Act. The learned Attorney General, appearing in support of this appeal, has assailed the soundness of both these grounds. The learned Attorney General contends, not without considerable force, that having, in agreement with the trial court, held that no plea of acquiescence, waiver or estoppel had …
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… reversed the decision of the trial Judge and decided the appeal against the Company on two grounds only, namely, ( 1 ) that the Company had by the conduct of its two members abandoned its right to challenge the forfeiture; and ( 2 ) that the form of the order could not be supported as one validly made under Section 38 of the Companies Act. The learned Attorney General, appearing in support of this appeal, has assailed the soundness of both these grounds. The learned Attorney General contends, not without considerable force, that having, in agreement with the trial court, held that no plea of acquiescence, waiver or estoppel had …
Made under this section, and citing it
3 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 38
What does Section 38 of the Companies Act deal with?
Section 38 of the Companies Act is headed "Punishment for personation for acquisition, etc., of securities". Any person who-- (a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities;
How do I find court cases under Section 38 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 38, section 38 Companies Act, section 38 of the Companies Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 38 of the Companies Act, and has it changed?
Its own text turns on section 447 (Punishment for fraud), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there are 3: most recently Amendment of Schedule VII of the Companies Act,2013 (2019), then commencment notification dt 14.08.2019 -CA (Amendment) Act 2019 (2019), and 1 more.
When did Section 38 of the Companies Act come into force?
Section 38 of the Companies Act, cited as Companies Act 38, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.