63. Criminal liability
for mis-statements in prospectus.—(1) Where
a prospectus issued after the commencement of this Act includes
any untrue statement, every person who authorised the issue
of the prospectus shall be punishable with imprisonment for
a term which may extend to two years, or with fine which may
extend to ‘[fifty thousand rupeesl, or with both, unless
he proves either that the statement was immaterial or that
he had reasonable ground to believe, and did up to the time
of the issue of the prospectus believe, that the statement
was true.
(2) A person shall not be deemed for the purposes of this
section to have authorised the issue of a prospectus by reason
only of his having given—
(a) the consent required by section 58 to the inclusion therein
of a statement purporting to be made by him as an expert,
or
(b) the consent required by sub-section (3) of section 60.
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