Section 38 Of Companies Act 2013: Punishment For Personation For Acquisition Of Securities

Section 38 of the Companies Act establishes standards or parameters of penalties for using and allotting the shares in Fictitious Name it says –

A person shall be liable to punishment under section 447 if he :

Makes in a fictitious name an application to a company for acquiring, or subscribing for, any shares therein, or
Otherwise includes a company to allot or register any transfer of shares therein to him or any other person in a fictitious name.
These provisions shall be prominently reported in every prospectus issued by the company and in every form of application of shares issued by the company to any person.

Personation: imitating the mannerisms of another person
Personation of acquisition: Any person who makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing to, its securities.

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