Punishment for fraudently inducing persons to invest money :
Section 36 of the Companies Act, 2013 provides that such persons who fraudulently induces persons to invest money by making statement which is false, deceptive, misleading or deliberately conceals any facts, shall be punishable for fraud under section 447. According to the section, any person shall be liable for fraud who, knowingly or recklessly, makes any statement, promise or forecast which is false, deceptive or misleading, or deliberately conceals any material facts, to induce another person to enter into, or to offer to enter into,—
(a) any agreement for acquiring, disposing of, subscribing for, or underwriting securities; or
(b) any agreement, the purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities; or
(c) any agreement for obtaining credit facilities from any bank or financial institution.