Section 34 and 35

Sec 34 states criminal liability, guilty under this section shall be liable u/s 447. Punishment include both imprisonment and fine.

Whereas Sec 35 talks about civil liability, guilty under this section will have to only compensate the loss suffered due to misstatement in prospectus.

When their is any mis-statement in the prospectus by comission or omission leads to liability
that be a civil and criminal
Every person who authorises themselves in prospectus it will lead to an criminal liabilty and they will punishable u/s 447 as fraud and that criminal liability would be defenced in twi circumstances they are if the mistatement is
1)immaterial
2) their shall be some reasonable ground to belive such misstatement

And a part from the criminal liability civil liability is for company directors, members , promotores, and for experts. they have to pay a compensation to investors but it may be defenced in 3 situations
1) if any directors withdrew his consent before such prospectus filed eith the registers.
2) when such prosoectus is issued without his knowledge and he had given a public notice .
3) believed on consent