Any person who, either 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, or with a view to, acquiring, disposing of, subscribing for, or underwriting securities; or
b. any agreement, the purpose or the pretended 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, or with a view to obtaining credit facilities from any bank or financial institution, shall be liable for action under section 447.
Legal Commentary & Landmark Judgments: Section 36
Section 36 establishes strict criminal liability for fraudulently inducing persons to invest money, punishing deceptive forecasts, deliberate omissions, or reckless promises under the severe penal provisions of Section 447.
In corporate fraud complaints filed before the Special Court, invoke Section 36 alongside Section 447. Complainants need not prove that the accused profited personally; demonstrating that false statements or concealed liabilities induced investment is sufficient to sustain conviction.