Non disclosure in RHP

This query is : Open

Sanjeev (Querist)
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26 December 2009 Dear Sir,

In the event of inadvertent non disclosure in the RHP what remedy is open to the investor in the IPO after the issuer Company has allotted the shares.

S D Shenvi

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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26 December 2009 Investor has two remedies: -

1. Remedy against the company - (i) Rescind the contract and (ii) sue for damage for deceit

2. Remedy against director/promotor: - (i) damage for fraudulent misrepresentation (ii) Compensation for untrue statement (iii) damage for non-compliance of Sec 56 of The Companies Act.

Regards
CS Pawan kumar Baid