Ethics in finance can be examined in three key areas: financial markets, financial services industry, and individuals working in financial organizations. In financial markets, issues like fraud, insider trading, unequal access to information, and prioritizing shareholder over stakeholder interests can arise. In financial services, professionals must serve clients' interests through honest, fair and compliant conduct while avoiding improper gifts or concealed information. Upholding codes of ethics through standards, oversight, and comprehensive laws can help strengthen ethics in the financial sector overall.

2. What is ‘Ethics’
Ethics is the study
of human behavior
which is right or wrong.
In general, ethics means
doing right things to
others, being honest to
oth.ers, being fair and
justice to others

3. What is 'Finance'
 Finance means fund or
other financial resources; it
deals with matter related to
money and the market. The
field of finance refers to the
concept of time, money and
risk and how they are
interrelated. Banks are the
main facilitators of fun
 Funding means asset in
the form of money ding.

4. What is Ethics in finance
 Ethics in finance is mean that bifurcate what is
right and wrong in context of financial matter.
 The assumption of modern financial-economic
theory runs counter to the ideas of honesty,
devotion, dependability and loyalty.
 Peoples who involved in finance activity have to
serve both their company and their customers at
utmost good faith.

5. Financial sector in India
REGULATION:
RBI, SEBI,FMC, IRDA, MoF, HLCC, PFRDA.
MARKETS:
Commodities, equities, debts, foreign exchange
Players:
Brokers, firms, banks, financial institutions, FII, mutual fund
manager, investor, exchange, depository, registrar,
custodian.

6. Issue in financial services:
 Deception
 Concealment
 Churning
 Unsuitable
 Twisting
 Flipping

7. Ethical issue in finance
Ethics in finance in define in three board theme:
 In financial markets
 In financial service industry( including banking &
insurance company)
 In financial people in organization

8. In financial markets
Frauds in relation to financial
market
insider trading
 Legal authority define fraud
as a crime that “involve they
use of dishonest or
deceitful conduct in order
to obtain some unjust
advantage over someone
else.”
 e.g. credit card fraud,
security related fraud,
identify related frauds etc.
 insider trading refers
generally to buying and
selling a security, in breach
of fiduciary duty or other
relationships of trust and
confidence, while in
possession of material , non
public information about the
security.

9. Cut.
Equal information: Equal bargaining power
 “level playing field”
requires not only that
everyone plays by the
same rules, but also that
they be equally equipped
to compete.
 agreements reached by
arm’s length bargaining are
considered to be fair,
whatever the actual
outcome.

10. Efficientpricing
 A fundamental markets includes efficient
prices that reasonable securities should
reflect their underlying value.

11. Stakeholder interest v/s Stockholder interest
 shareholder own a share of company so its known
as owner of company.
 stakeholder have an interest in company but do
not own it ( such as customer, government etc.)
so both party have different objective so they come
into conflicts .
such as shareholder wants short term profit where as
stakeholder desire tend to cost money and reduce
the profits.

12. campaign finance
 A movement, fueled in recent decades by political
candidates' increasing dependence on expensive
television advertisements, to restrict the amount
of money that individuals and interest groups can
contribute to political campaigns.

13. Ethics in financial service
 financial service professionals job and mission is
to enable clients to grow and protect their wealth.
 The financial services industry is also highly
regulated. regulation minimize the fraud, theft &
misuse. Ethics set the standard of excellence for
professionals in financial services.

14. Example of unethical temptations
 offer a customer an authorized “gift” in return for
their business.
 put on non business expenses to related expenses.
 conceal the information from customer in order
to get their business and to meet your sales’ goals.
etc….

15. Code of Ethics in Finance
 Act with honesty and integrity
 To provide information which
is full, fair, accurate,
complete, objective, relevant,
timely and understandable etc.
 Act in accordance with all
applicable laws, rules and
regulations of governments,
and other appropriate private
and public regulatory
agencies.
 To promote ethical behavior
among our associates.
 Respect the confidentiality of
information.
 Act in good faith, responsibly,
with due care, competence
and carefulness, without
misrepresenting material
factor allowing my
independent judgment to
be subordinated
 Adhere to and promote this
Code of Ethics

16. How to improve ethics behavior
 improving standard
 weak links
 Pledging of shares
 Auditor’s role
 institutional investors
 compressive laws