https://www.taxtmi.com/caselaws?id=195478 Lead merchant bankers must actively verify the truth, completeness and adequacy of material disclosures in IPO offer documents under the applicable disclosure and due diligence framework. This duty extends to issuing updated due diligence certificates at relevant stages and independently ascertaining material developments, rather than passively relying on the issuer's representations or silence. Material inter-corporate deposits and purchase orders arising between the red herring prospectus and final prospectus required appropriate disclosure, particularly where they affected the issuer's financial position. Failure to update and verify such facts constitutes a breach of merchant banker due diligence obligations and may justify a proportionate monetary penalty, despite the absence of exact quantification of investor loss or unlawful gain. en-us Wed, 19 Feb 2014 00:00:00 +0530 Wed, 01 Nov 2017 11:37:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=195478 Lead merchant bankers must actively verify the truth, completeness and adequacy of material disclosures in IPO offer documents under the applicable disclosure and due diligence framework. This duty extends to issuing updated due diligence certificates at relevant stages and independently ascertaining material developments, rather than passively relying on the issuer's representations or silence. Material inter-corporate deposits and purchase orders arising between the red herring prospectus and final prospectus required appropriate disclosure, particularly where they affected the issuer's financial position. Failure to update and verify such facts constitutes a breach of merchant banker due diligence obligations and may justify a proportionate monetary penalty, despite the absence of exact quantification of investor loss or unlawful gain. Case-Laws Companies Law Wed, 19 Feb 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=195478