law: Companies Act, 1956
  Sec 72    -    
  
  Applications for, and allotment of, shares and debentures 
  (1)
  (a) No allotment shall be made of any shares
  
  in or debentures of a company in pursuance of a prospectus issued generally,
  
  and no proceedings shall be taken on applications made in pursuance of a
  
  prospectus so issued, until the beginning of the fifth day after that on which
  
  the prospectus is first so issued or such later time, if any, as may be
  
  specified in the prospectus :
  Provided  that where, after a prospectus is first
  
  issued generally, a public notice is given by some person responsible under
  
  section 62 for the prospectus which has the effect of excluding, limiting or
  
  diminishing his responsibility, no allotment shall be made until the beginning
  
  of the fifth day after that on which such public notice is first given.
  (b) Nothing in the foregoing provision shall
  
  be deemed to exclude, limit or diminish any liability that might be incurred in
  
  the case referred to therein under the general law or this Act.
  (c) The beginning of the fifth day or such
  
  later time as is mentioned in the first paragraph of clause (a), or the
  
  beginning of the fifth day mentioned in the second paragraph of that clause, as
  
  the case may be, is hereinafter in this Act referred to as " the time of
  
  the opening of the subscription lists."
  (2) In sub-section (1), the reference to the
  
  day on which the prospectus is first issued generally shall be construed as
  
  referring to the day on which it is first so issued as a newspaper
  
  advertisement :
  Provided  that, if it is not so issued as a
  
  newspaper advertisement before the fifth day after that on which it is first so
  
  issued in any other manner, the said reference shall be construed as referring
  
  to the day on which it is first so issued in any manner.
  (3) The validity of an allotment shall not be
  
  affected by any contravention of the foregoing provisions of this section; but,
  
  in the event of any such contravention, the company, and every officer of the
  
  company who is in default, shall be punishable with fine which may extend to
  
  fifty thousand rupees.
  (4) In the application of this section to a
  
  prospectus offering shares or debentures for sale, sub-sections (1) to (3)
  
  shall have effect with the substitution of references to sale for references to
  
  allotment, and with the substitution for the reference to the company and every
  
  officer of the company who is in default of a reference to any person by or
  
  through whom the offer is made and who is knowingly guilty of, or willfully
  
  authorizes or permits, the contravention.
  (5) An application for shares in, or
  
  debentures of, a company, which is made in pursuance of a prospectus issued
  
  generally shall not be revocable until after the expiration of the fifth day
  
  after the time of the opening of the subscription lists, or the giving, before
  
  the expiry of the said fifth day by some person responsible under section 62
  
  for the prospectus, of a public notice having the effect under that section of
  
  excluding, limiting or diminishing the responsibility of the person giving it.