Lack of Ethics in Markets - Addl Inputs
Below are the key issues, root causes and solutions for lack of ethics in financial markets. Kindly review and share any additional inputs you may have. We will soon be compiling this whitepaper for submission to key stakeholders including Chairman, SEBI so actions can be taken.
Transparency International India
Lack of ethics in Financial Markets - Key Solutions
1. SEBI should increase vigilance on notorious brokers and traders
2. Every broker, trader and entity involved in trading in financial markets must be required to sign a Code of Ethics
3. Senior Management of listed companies must be made to individually sign Code of Ethics
4. Very strict laws should be made against insider trading, leading to severe imprisonment
5. Government should evolve free tutorials in local languages and make them available easily for investing public, online and offline
6. Analysts should be barred by law from taking gifts in cash or kind from corporates
7. Brokerage firms should be required to make their workings more transparent
8. People should be made to understand that stock markets are long term investments
9. Laws should be made against conflict of interest in financial markets
10. Investors should trade only with SEBI registered brokers
11. SEBI may make an independent survey of companies who are registered with SEBI and curb trading of penny stocks.
Lack of Ethics in Financial Markets – Root Causes
1. Brokerage firms have become extremely profit oriented
2. There is a lot of pressure on the brokers to earn more commission for the firm
3. The terms and conditions signed while agreeing to work with brokerage firms are heavily tilted towards the firms
4. If someone makes money once, they get motivated to invest more and more
5. People don’t understand the fact that financial markets are long term investments
6. Many people suffer losses due to their greed
7. Senior management in listed companies pass on their knowledge about company affairs to friends/family so that they could make money
8. Lack of regulations on analysts receiving gifts from corporates
9. Lack of laws against conflict of interest
10. SEBI is not vigilant enough.
Lack of Ethics in Financial Markets – Issues
1. Some brokers trade clients' instrument without clients knowledge
2. Speculation is legal name of gambling which leads to high inflation and spoils many
financially
3. The stock exchange has become a place of betting
4. Stock markets are not considered a place of investment anymore
5. Many companies trade on the behalf of the client without their knowledge
6. The brokerage is never transparent
7. Insider trading is widely practiced and the perception is that there is nothing wrong with it
8. Brokers lure people to invest more money by promising high profits
9. Many fictitious companies manage to list on BSE and send SMS to many customers dealing in stocks asking them to buy a specific stock
10. Large amount of money laundering takes place in stock market
11. Some analysts receive cash and valuable gifts kickbacks from corporates to pump their stock. more
Transparency International India
Lack of ethics in Financial Markets - Key Solutions
1. SEBI should increase vigilance on notorious brokers and traders
2. Every broker, trader and entity involved in trading in financial markets must be required to sign a Code of Ethics
3. Senior Management of listed companies must be made to individually sign Code of Ethics
4. Very strict laws should be made against insider trading, leading to severe imprisonment
5. Government should evolve free tutorials in local languages and make them available easily for investing public, online and offline
6. Analysts should be barred by law from taking gifts in cash or kind from corporates
7. Brokerage firms should be required to make their workings more transparent
8. People should be made to understand that stock markets are long term investments
9. Laws should be made against conflict of interest in financial markets
10. Investors should trade only with SEBI registered brokers
11. SEBI may make an independent survey of companies who are registered with SEBI and curb trading of penny stocks.
Lack of Ethics in Financial Markets – Root Causes
1. Brokerage firms have become extremely profit oriented
2. There is a lot of pressure on the brokers to earn more commission for the firm
3. The terms and conditions signed while agreeing to work with brokerage firms are heavily tilted towards the firms
4. If someone makes money once, they get motivated to invest more and more
5. People don’t understand the fact that financial markets are long term investments
6. Many people suffer losses due to their greed
7. Senior management in listed companies pass on their knowledge about company affairs to friends/family so that they could make money
8. Lack of regulations on analysts receiving gifts from corporates
9. Lack of laws against conflict of interest
10. SEBI is not vigilant enough.
Lack of Ethics in Financial Markets – Issues
1. Some brokers trade clients' instrument without clients knowledge
2. Speculation is legal name of gambling which leads to high inflation and spoils many
financially
3. The stock exchange has become a place of betting
4. Stock markets are not considered a place of investment anymore
5. Many companies trade on the behalf of the client without their knowledge
6. The brokerage is never transparent
7. Insider trading is widely practiced and the perception is that there is nothing wrong with it
8. Brokers lure people to invest more money by promising high profits
9. Many fictitious companies manage to list on BSE and send SMS to many customers dealing in stocks asking them to buy a specific stock
10. Large amount of money laundering takes place in stock market
11. Some analysts receive cash and valuable gifts kickbacks from corporates to pump their stock. more
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LACK OF ETHICS IN FINANCIAL MARKETS- ISSUES ITEM NO 3 AND ITEM NO 10. VERY CORRECT IN CASE OF MADRAS STOCK EXCHANGE (DELISTED A FEW YEARS BACK) MSE'S HIGH PROFILE E.D AND OTHER OFFICIALS CONNIVED AND ACTED IN CONCERT WITH THE LEGAL HEIR'S OF ITS SO CALLED FOUNDER BROKER AND PUNISHED AN INNOCENT PERSON BY EXPELLING HIM FROM MEMBERSHIP, REFUSED TO HONOR COURT ORDER, WENT ON AN APPEAL AND ARRANGED AND ADJUSTED THE JUDICIARY, RESULTING WHICH AN INNOCENT SENIOR CITIZEN OF INDIA, RESIDENT OF CHENNAI, TAMILNADU IS STILL SUFFERING LOSSES, FINANCIALLY, MENTALLY, EMOTIONALLY AND PHYSICALLY BECAUSE OF THE CONCERT'S GREED. POWERFUL POLITICIAN'S WITH HIGH ASPIRATIONS TO RULE TAMILNADU, HAS WORKED, HAND IN GLOVE WITH THE SAID BODY VIZ MSE BY PURCHASING IT'S LAND FOR A SONG AND MY QUESTIONING OF THE SAME, HAS RESULTED IN HARASSMENT BY THE SAID POWERFUL SOLAR FAMILY, RESULTING IN BUSINESS LOSS, MY HEALTH LOSS AND MY PEACE OF MIND. WILL HON'BLE P.M SHRI NAMO ENQUIRE THE TRUTHFULNESS OF THIS STATEMENT AND TAKE REMEDIAL MEASURES TO SAVE THE SENIOR CITIZEN AND MYSELF FROM THE CLUTCHES OF EVIL FORCES? OUR MANU DHARMA SAYS THAT A PRAJA CAN REPRESENT THE GRIEVANCE ONLY TO THE RULER, RAJHA OF THE COUNTRY, AND TAMILNADU IS FAMOUS FOR MANU NEEDHI. NEEDLESS TO MENTION THAT GODDESS MEENAKSHI'S TEMPLE HAS BEEN SELECTED FOR IT'S CLEANILINESS, BUT MADURAI NEEDHI TO KARPUKKARASI KANNAKI BY THE THEN RULER OF MADURAI, SHOULD ALSO BE FOLLOWED BY THE HEAD OF INDIA. more
Oct 03
Laws are there. Very well defined but are not being followed or obeyed. The AAM customer is not aware of the rules & regulations & the institutes play around the rules. The bank executives will start asking for some deposit while opening the saving account which as per RBI is prohibited. Still banks continue asking this. The same case is with Brokers. They will give you the guarantee of the profit on certain shares. From where are they getting these info. Isn't it a case of inside trading. SEBI is helpless is such cases.There should be proper implementation of such rules with stricter punishment. more
Sep 29
Excellent topic selected---malpractice in financial institutions be it a bank, depository, brokers,agents dealing in finance matters. Even well known MUTUAL FUND HOUSES are cheating public when redemption is applied for. Sebi must deeply study the MF fund houses n the cat will be out to shock, surprise all. It is a special request to SEBI to consider some action on AXIS MUTUAL FUND more
Sep 28
So we are also in to a phase,where our paper currency,or metal alone will not save us.The environment is against us. more
Sep 28
What is the use of commenting on Local Circle since from it creating I am regularly writing but so far no solution,every one knows after several scams and frauds SEBI ACT being enacted in the Parliament to protect the interest of investors but today it is working against interest of cores of investors and working like agent of fraud companies,fraud brokers and who ever paid heavy bribe got permission for public issue with high and unexpected premium one Matrimony premium Rs 1920 Dixon Electronics Rs1760,today officers of SEBI are corepati and one Lady executive who resigned her assets not less than thousand cores and investors became beggar and life time poverty.But Pm Modi and FM Jaitley has no time as a result 2000 listed companies vanished from market and investors lost more than Rs7 lakh cores.I sent lakh mail but no reply more
Sep 29
While i donot want to quote my novels,i would like to state that we are leaving things to Auditors and advocates[legal]we are leaving forensics to hay wire.
While SATYAM,and SAHARA are fundamentals,there are many companies awarded,either the intellectual property as a share escalation by all Rating companies which are in to ratings.The projected cash flow,works for real estate no where near to reflection.
Please tell me if the share earning is almost 20% of the base price,why exaggerated price in offering-straight cheating-for a company unknown -either in size-or in product.
These are my novels-fiction-on companies-valuation[my profession][1]https://www.scribd.com/document/327290350/2025-Diamond-Tresure-Islands [2]https://www.scribd.com/doc/291090713/Nani-Novel [3]https://www.scribd.com/doc/284539534/9202020 more
While SATYAM,and SAHARA are fundamentals,there are many companies awarded,either the intellectual property as a share escalation by all Rating companies which are in to ratings.The projected cash flow,works for real estate no where near to reflection.
Please tell me if the share earning is almost 20% of the base price,why exaggerated price in offering-straight cheating-for a company unknown -either in size-or in product.
These are my novels-fiction-on companies-valuation[my profession][1]https://www.scribd.com/document/327290350/2025-Diamond-Tresure-Islands [2]https://www.scribd.com/doc/291090713/Nani-Novel [3]https://www.scribd.com/doc/284539534/9202020 more
Sep 29
