The promoters of leading telecom product manufacturer, Kavveri Telecom Products Ltd have pledged 5% stake of the company, as collateral security for credit limits sanctioned to the firm, with the State Bank of India.

The company, in a filing before Bombay Stock Exchange, said, "Promoter has pledged shares with State Bank of India, Bangalore as a collateral security for the credit limits sanctioned to the company by the bank."

It should be recalled that market regulator, the security and Exchange Board of India, has recently asked all listed companies to disclose the amount of shares pledged with lenders, in a bid to discourage falsification of profit by manipulation of share's value in account books.

The regulator, concerned with disclosure of largest ever corporate fraud done by chairman and executives of beleaguered Satyam Computers, is taking various measures to secure interests of shareholders and to ensure business transparency.   

Shares of company declined 1.27 per cent and closed at Rs 34.85 on the BSE.