It gives us immense pleasure to present the first edition of “Ethics in Financial Markets”, specially designed for students of Bachelor of Management Studies (BMS) – Finance and other commerce and management programmes under the University of Mumbai. This book has been developed in accordance with the National Education Policy (NEP) 2020 framework and aims to provide students with a comprehensive understanding of ethical principles, professional conduct, corporate governance and regulatory frameworks that govern modern financial markets.
Financial markets play a vital role in mobilising savings, allocating capital, facilitating investments and supporting economic growth. However, the effectiveness and sustainability of these markets depend largely on the ethical behaviour of market participants, including investors, financial institutions, intermediaries, corporations and regulators. In an increasingly interconnected and technology-driven financial environment, issues such as insider trading, market manipulation, financial fraud, conflicts of interest and corporate governance failures pose significant challenges to market integrity and investor confidence.
The objective of this book is to help students understand the importance of ethics in maintaining fairness, transparency, accountability and trust in financial markets. The book begins with an overview of the financial system and financial markets, providing a strong conceptual foundation. It then explores the significance of ethics in finance, major ethical theories, ethical challenges faced by financial professionals and the role of regulatory bodies in promoting ethical conduct. Special emphasis has been placed on corporate governance, investor protection, ethical decision-making and real-world case studies that demonstrate the consequences of ethical and unethical behaviour.
To make learning engaging and practical, the content has been presented in simple and student-friendly language, supported by illustrations, examples, “Did You Know?” sections, mini case studies, Continuous Internal Evaluation (CIE) exercises, experiential learning activities and innovative assessment methods. Detailed case studies of major financial scandals have been included to help students analyse ethical dilemmas and understand the importance of responsible financial conduct in real-life situations.
Contents –
1. Introduction to Financial Markets
2. Ethics in Financial Markets
3. Question Paper