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ial instituitions in 2008 had an impact on the other sectors of the economy. As these instituions have grown in size and the important function that they serve in the economy, a lot of attention has been focussed on their purposefull management since 2008- of providing the best standard services to the genral public and in the most ethical manner. Money managers work across different markets with the single motive of generating speculative return for their investment. In the pursuit of raising the performance benchmark, creative methodology is applied for generating short-term speculative return at the expense of damaging the long term industry ethical standard. And with the recent financial turmoil it was evident that these institutions were vulnerable to multiple systemic and ethical abuses and corrupt practices of the individuals in the system. There is also the issue of institutions and individuals facing conflicts of interest while transacting with other entities. This issue is more peculiar after certain regulatory changes had been initiated in a few developed economies which led to an industry wide integration for financial services. This along with the globalisation of financial markets has led to the complex web of operation in the industry. All these factors have damaged the repute of the industry and are blamed for the recent global economic slowdown.

Financial Markets

It is evident that unethical behaviour is inevitable and systemic in the financial system because, unlike other industries that provide intrinsically useful goods and services, the single focus of most financial deals is the maximisation of money. As a result of this continual naked pursuit of money, financial services has been called a ‘pollution intense environment’ rife with negative externalities or harmful side effects (Lamb, 1999). The financial markets are the bedrock of the financial system of a country. They serve the purpose of efficiently allocating the monetary savings of individuals to industries which utilise them for investing in real or financial assets. The optimal allocation process will channelize these savings to the most productive purpose. This is a critical component in ensuring the adequate capital formation and economic growth in a modern economy. But financial markets are prone to multiple types of unfair practices which include fraud, manipulation, unfair conditions, contractual obligations, information asymmetry. The vulnerability of unfair practice occurring more often is aggravated by the fact that there are a huge number of market participants, the opportunity of generating extra-normal returns, multiple regulatory bodies. So the size of the system enables small levels of manipulative behaviour. One of the underlying theories of the financial market is the Efficient Market Hypothesis. According to EMH, stocks always trade at their fair value on the stock exchange and that makes it impossible for an investor to either purchase undervalued stocks or sell stocks at inflated prices. The theory states that stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. So in an EMH state making speculative gains would not be possible. But in practice, the market participants operate only to make speculative gains. This factor is responsible for creating a very uncertain trading climate and also increasing the daily volatility. Information a