Punishment for personation for acquisition, etc., of securities :

Section 38 of the Companies Act, 2013 lays the laws related to the personation for acquisition of the securities

(1) Personation of securities: Any person who—

(a) makes or abets making of an application in a fictitious name to a company for acquiring, or subscribing for, its securities; or

(b) makes or abets making of multiple applications to a company in different names or in different combinations of his name or surname for acquiring or subscribing for its securities; or

(c) otherwise induces directly or indirectly a company to allot, or register any transfer of, securities to him, or to any other person in a fictitious name,

-then such person shall be liable for action under section 447.

(2) Provisions shall be stated in every prospectus and application: This provision shall be stated in every prospectus issued by a company and in every form of application for securities.

(3) Order of court on conviction: Where a person has been convicted under this section, the Court may also order disgorgement of gain, if any, made by, and seizure and disposal of the securities in possession of, such person.

(4) Amount to be credited to IEPF: The amount received through disgorgement or disposal of securities shall be credited to the Investor Education and Protection Fund.