New Delhi, July 15 -- "This report, by its very length, defends itself against the risk of being read."

- Winston Churchill

Although the allegations against Rajesh Exports remain unproven, their emergence is enough to revive memories of corporate scandals that have periodically shaken India's capital markets. The collapse of Satyam Computer Services and the governance and debt crisis at IL&FS remind us that even highly regulated and well-disclosed financial systems are not immune to manipulation.

Listed companies disclose vast amounts of information. Their accounts are audited, and regulators mandate extensive reporting. India's financial markets are arguably more transparent and closely monitored today than ever before. Yet even a whi...