The Implications of Section 34 of Companies Act

Any company issues, distributes, or circulates a prospectus that contains information that is not true, misleading statements, or omission of material information may lead to criminal liability under Section 447 of the Companies Act, 2013. Anyone responsible for violating the said provisions can be punished with imprisonment for up to 5 years or a fine or both. https://www.registerkaro.in/post/section-34-of-companies-act-2013-2
Provided if it is proved that, The misstatement or omission in the prospectus was immaterial and it has not affected the Investors.
It should prove that on the ground of reasonable belief, the statement in the prospectus was true and omission in it was necessary which was done with complete due diligence.