(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.