ethics to be followed in finance and financial market (stock market, private financial institution etc.)

1. Ethics in Finance
Presented by :-
Meenakshi Chhangani

2. Content
O Introduction to
ethics
O Why do we need
ethics?
O Ethics in finance
O Ethical issues in
finance
O Ethical issues in
financial markets
O Excuses for
unethical behavior
O How to restrain
unethical activities
in finance

4. Why do we need ethics??

5. O to define accepted/acceptable behaviours
O to promote high standards of practice
O to provide a benchmark for members to use
for self evaluation
O to establish a framework for professional
behaviour and responsibilities
O as a vehicle for occupational identity
O as a mark of occupational maturity

6. Ethics in Finance
O Ethics in finance is one of the main things which
everyone has to follow from small, medium and big
level company.
O It is considered important as without financial
component no business can run for a long time.
O Ethics in finance may vary from industry to industry
but everyone is liable to do their work at utmost
good faith.

7. Code of Ethics in Finance
O Act with honesty and integrity avoiding conflicts of
interest in personal and professional relationship
O To provide information which is full, accurate, fair,
objective, timely and understandable.
O To promote ethical behavior among other associates
O Respect the confidentiality of info acquired in course
of business except authorized
O Adhere to and promote this Code of Ethics.

8. Ethical issues in Finance
O Insider trading
O Financial markets
O Hostile takeovers
O Financial statements

10. Contd.
OChurning :-
Excessive or inappropriate
trading for clients account
by a broker who has a
control over the account
with intent to generate
commissions rather than
to benefit client

11. Contd.
O Unsuitability:-
Not all investments are
suitable for every
investors. For e.g. : certain
high risk investments are
inappropriate for retired or
conservative investors

12. Contd.
O Unfairness in
markets
The gain of one may equal
loss to other, though
market exchanges are
advantageous to both the
parties

13. Excuses for unethical behavior
O Everybody else is doing it
O Its not that big of a deal
O Its necessary (the end justifies the means)
O Its not going to hurt anyone
O Its legal

14. Contd.
O I deserve this
O It’s for the benefit of company or
somebody else
O Nobody will know.

15. Restraining unethical
behaviour
O Improving standards
O Pledging of shares
O Avoid Weak links
O Comprehensive laws
O Auditor’s role
O Institutional investors