Ethics in financial markets: Inputs on Root Causes

Below are some of the key issues as identified by you with ethics in financial markets in India. Kindly review and help identify root causes for these issues.

We will then work on solutions seperately and put together a whitepaper for SEBI and other stakeholders so actions can be taken to address these issues.

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
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
12. Some analysts receive cash and valuable gifts kickbacks from corporates to pump their stock. more  

View all 12 comments Below 12 comments
I have only one Question..... .... is Govt or Political leaders really don't know about how to stop the corruption / how to make the corruption free country ????? more  
It seems that sebi officials are in league with operators in the stock market.thats why since trade of dhyana finstock on 27/07/2015 we have neither recvd the shares nor our money back.

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From:"Transparency Intl India" <>
Date:Thu, 5 Nov, 2015 at 9:22 am
Subject:New post "Ethics in financial marke..." in ["I AM Against Corruption" Circle] more  
It won't be right to say that stock exchanges are gambling dens. With SEBI being active and stock exchanges trading being screen based the whole operations are transparent. We need to overcome our greed of making more money by doing margi trading. Use stock exchanges as place of investing your surplus money if you are conversant with stock investing. Otherwise use mutual fund route only. more  
There is wide fluctuation in shares,so share trading is always a gambling.We r befooled due to our greed. more  
Minimum brokerage keeps small investors out of stock market as the trade becomes unviable. Besides minimum brokerage of Rs. 25/- is too high.Sebi should take necessary action in this regard. more  
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