Controlling shareholders in Indian companies will be forced to reveal borrowings made against their own shares under reforms launched by regulators that could provide more transparency about how India's most powerful business families control their empires.
The move by the Securities and Exchange Board of India to make it mandatory for the controlling shareholders of companies to disclose when they pledge shares as collateral to lenders is the biggest capital reform since the Satyam scandal erupted this month.
"Such disclosures shall be made as and when the shares are pledged as well as by way of periodic disclosures," Sebi said.
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