Sebi disposes case against Aryaman Financial Services

Capital market regulator today disposed of the case against Aryaman Financial Services in a case related to violations of merchant banker regulations in the intial public offering (IPO) of VKS Projects.
Sebi's show cause notice had alleged that Aryaman Financial Services had made certain false and misleading disclosures in the offer document of VKS Project.
In an order, Sebi said that "records of the case and considering the submission of the noticee that Sebi had vetted the Draft Red Herring Prospectus...It is difficult to hold the noticee liable for making false and misleading disclosures in the offer document or failed to exercise due diligence as alleged".

"...Hereby conclude that the alleged violations do not stand established against the noticee - Aryaman Financial Services Ltd. (Merchant Banker). Therefore, the matter is disposed off accordingly," it added.
The merchant banker was charged of making misleading disclosures and failing to exercise due diligence in carrying out the independent verification with respect experience and knowledge of VKS Projects promoter-directors.
It had also allegedly made false and misleading disclosures about management team of the company in the offer document, among others.
The market regulator had conducted an inspection of the books of accounts of Aryaman Financial Services on September 24-25, 2012 relating to the public issue of VKS Projects wherein Aryaman was the acting at the merchant banker.

The period for inspection was covered from September 2009 to September 2012.