India's market regulator makes improvements

IN THE WAKE of the Satyam Computer $1 billion fraud scandal, India has announced that it is tightening up its rules on company disclosure.

Securities and Exchange Board of India said that the scandal had taught Indian businesses to be more open with shareholders. As a result, the controlling shareholders of a company will have to disclose how many of their shares they have pledged as collateral.

Pledged shares played a key role in Satyam's fall. Its founder Ramalinga Raju had cooked the books for years fabricating, among other things, $1 billion in fictitious cash deposits. µ

L'Inq
AP