NITTE MEENAKSHI INSTITUTE OF TECHNOLOGY

Department of Management Studies

Seminar Report on “Ethics In Stock Market”

SUBMITTED BY:
MR. VENKATESH S
USN : 11NT21MBA01164

Under the guidance of

Mr. Sushanth R
Assistant Professor
Introduction to the topic:
Business Ethics' can be termed as a study of
proper business policies and practices regarding
potentially controversial issues, such as
corporate governance, insider trading, bribery,
discrimination, corporate social responsibility,
and fiduciary responsibilities.
Ethics is important in the finance industry.
 Scams.
 Frauds.
 Unfair trading practices.
 Insider trading.
 Window dressing
 Background:

The first organised stock exchange in India was started in 1875 at

Bombay and it is stated to be the oldest in Asia.
In 1894 the Ahmedabad Stock Exchange was started to facilitate
dealings in the shares of textile mills there.
The Calcutta stock exchange was started in 1908 to provide a
market for shares of plantations and jute mills.
Then the madras stock exchange was started in 1920.
At present there are 23 stock exchanges in the country, 21 of
them being regional ones with allotted areas. Two others set up in
the reform era, viz., the National Stock Exchange (NSE) and Over
the Counter Exchange of India (OICEI), have mandate to have
nation-wise trading.
The aim and scope of the topic:

The first step towards making a career in the stock market is always checking on how much aptitude
you have for the workings of the market. If you have a passion for the numbers and understand
the background of the market you are halfway there. There is nothing as hard and fast rule to have
a degree in Finance to make a Career in Stock Market. Even if you are a B.Sc/B.Tech or 12th pass
out, you have equal chances to become a successful career in this domain. Like…
 Stockbroker
 Investment advisor
 Sub broker
 Research analyst
 Personal finance expert for clients of broking house
 Minor Can also invest in stock market through his Guardian
Highlights from the Reference Case Study:
 The ICE sector was booming during that time and Ketan would invest majorly into these sectors
which helped him gain the trust of the investors.
 He was trading in Kolkata Stock Exchange which was lacking strict regulations itself.
 He would buy shares of low profile companies when they were trading at low prices and joined
hands with certain other traders to frequently buy and sell the stocks of such companies which
enabled the sudden price rise.
 The financing method of buying shares and getting pay orders and later getting them pledged
when the prices shoot up also helped him create a Bull Run in the stock market.
 Many investors believed that slipshod reactions and regulations of SEBI who could have noticed
the unusual price movements in the market helped the scam to accumulate more losses to them.
 His connections with celebrities, political and religious leaders also aided him to get the majority
of the fund from large corporates and businessmen.
Observations and Learning:

 Pump and Dump  Avoid Exploitation

 Window dressing
 Get the Accounts Audited
Fake Growth
Fake future prospective
 Practice Fair Business
Fake Contract  Avoid Monopoly
Overall Fake Image  Service before Profit
 Circular Trading
 Badla System
Conclusion:

Everything on the earth has some Ethics. It may be related to business, humanity.
Ethics is most important in the life and the money, wealth does not come into consideration. The
man grows with the Ethical values.

The Investing industry has to go with customers(Client) satisfaction and consider the profit of both
the side (company and investor). Because there are profit motive in the market.
A man without ethics is a wild
beast loosed upon this would.
-Albert Camus
References:

 https://www.investopedia.com/terms/s/stockmarket.asp
 https://en.wikipedia.org/wiki/Stock_market#History
 https://www.sofi.com/learn/content/history-of-the-stock-market/
 https://link.springer.com/chapter/10.1007/978-3-642-48683-8_1?noAccess=true
 https://investingbazaar.com/blog/scope-and-career-in-stock-market.php
 https://tradebrains.in/ketan-parekh-scam/
 https://www.vrdnation.com/ketan-parekh-scam/
Thank You