(1) No form of application for the purchase of any of the securities of a company shall be issued unless such form is accompanied by an abridged prospectus:
Provided that nothing in this sub-section shall apply if it is shown that the form of application was issued—
- in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to the securities; or
- in relation to securities which were not offered to the public.
(2) Every person who acts in contravention of the provisions of this section shall be punishable with a fine which may extend to fifty thousand rupees.