1. No form of application for the purchase of any of the securities of a company shall be issued unless such form is accompanied by an abridged prospectus:
Provided that: nothing in this sub-section shall apply if it is shown that the form of application was issued—
a. in connection with a bona fide invitation to a person to enter into an underwriting agreement with respect to such securities; or
b. in relation to securities which were not offered to the public.
2. A copy of the prospectus shall, on a request being made by any person before the closing of the subscription list and the offer, be furnished to him.
3. If a company makes any default in complying with the provisions of this section, it shall be liable to a penalty of fifty thousand rupees for each default.
Legal Commentary & Landmark Judgments: Section 33
Section 33 prohibits the issuance of share application forms unless accompanied by an abridged prospectus, safeguarding retail investors from subscribing blindly without key disclosures.
In public offerings, check that every physical and digital application form incorporates the abridged prospectus (Form PAS-1). Distributing stand-alone application forms at brokerages or kiosks violates Section 33 and exposes lead managers to severe regulatory penalties.