53. Prohibition on issue of shares at discount.—(1) Except as provided in section 54, a company
shall not issue shares at a discount.
(2) Any share issued by a company at a discounted price shall be void.
(3) Where a company contravenes the provisions of this section, the company shall be punishable
with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every
officer who is in default shall be punishable with imprisonment for a term which may extend to six
months or with fine which shall not be less than one lakh rupees but which may extend to five lakh
rupees, or with both.
