This document discusses ethics in finance. It defines ethics as determining right and wrong human behavior. Finance deals with money, markets, and managing funds. Ethics in finance is important because the financial system impacts entire countries. Those in finance must act with honesty, integrity, and in accordance with all applicable laws. Ethical issues can arise in areas like financial statements, insider trading, and hostile takeovers. Upholding codes of ethics and considering stakeholders is crucial for building trust in the financial system. Following ethics in finance helps ensure its proper functioning and benefits society.

1. ETHICS IN FINANCE
SUBMITTEDTO: SUBMITTED BY:
Miss Deepika Akanksha Jain
170101030049
M.com Final

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 others , 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 fund.
 Funding means asset in the form of money
finance is the set of activities that deals with
the management of funds.

4. What Is Ethics In Finance
 Ethics in finance is one of the main things
which everyone has to follow from the small,
medium, and big level co. because almost all
the country depend up on the financial
background of the country.
 Ethics in finance may vary from different
industries but everyone is liable to do their
work at utmost Good Faith.

5. Code Of Ethics In Finance
 Act with honesty and integrity, avoiding real or
clear conflicts of interest in personal and
professional relationships.
 To provide information which is full , fair,
accurate , complete, objective , relevant, timely
and understandable to other public
communications made by the company
 Act in accordance with all applicable laws, rules
and regulations of governments, and other
appropriate private and public regulatory
agencies

6.  Act in good faith, responsibly, with due care,
competence and carefulness , without
misrepresenting material facts or allowing my
independent judgment to be subordinated
 Respect the confidentiality of information
acquired in the course of business except when
authorized or otherwise legally obligated to
disclose the information.
 To promote ethical behavior among our
associates
 Adhere to and promote this Code of Ethics

7. Importance Of Ethics In
Finance
 Trust
 Confidentiality
 Collaboration
 Code of Ethics
 Considerations

8. Ethical Issue In Finance
 Financial Statements
 Financial Markets
 InsiderTrading
 HostileTakeovers

9. Fraud In Financial
Statements
 Fictitious Revenues
 Concealed Liabilities and Expenses
 Fraudulent AssetValuations
 ImproperAssetValuations
Example:The Satyam Computer Services
Scandal

10. Duties Of An Auditor
 To give an accurate statement to the
members about the state of affairs of a
company
 To meet the objectives of Companies act 2013
and also the Articles of Association.
 To be reasonably skillful and careful in
identifying the true nature of the accounts.

11. Ethical Issues in Financial
Markets
 Deception
 Churning
 Unsuitability
 Unfairness in Markets

12. Insider Trading
 Insider trading essentially denotes dealing in
a company’s securities on the basis of
confidential information relating to the co.
which is not published.
 It is fairly a breach of fiduciary duties of
officers of a company or connected persons
as defined under the SEBI regulations,1992,
towards the shareholders.

13. Who Are Inside Traders?
 Corporate officers, directors, and employees
who traded the corporations securities after
learning of significant, confidential corporate
developments.
 Friends, business associates, family
members, and other type of such officers,
directors and employees, who traded the
securities after receiving such informations.

14. Cont.
 Employees of law, banking, brokerage and
printing firms who were given such
information to provide services to the
corporation whose securities are traded.
 Govt. employees who learned of such
information because of their employment by
the Govt.

15. Hostile Takeovers
 A HostileTakeovers is an acquisition in which the
company being purchased doesn’t want to be
purchased, or doesn’t want to be purchased by
the particular buyer that is making a bid. How
can someone buy something that is not for sale?
 HostileTakeovers only work with publicly traded
companies.That is, they have issued stock that
can be bought and sold on public stock markets.
 Example of HostileTakeover is “ Microsoft and
Yahoo”

16. CONCLUSION
 No business and company can run without
finance. It is lifeblood for all the organization.
So if almost all the field in finance follows
ethics in their duty almost all other process
will function very without any discrepancies.

17. THANKYOU