Business Ethics and Corporate Governance, Second Edition

ETHICAL ISSUES ARISING OUT OF ACTIVITIES OF PROFESSIONAL PLAYERS

The financial services industry has several players such as insurance agents, brokers, individual investors, institutional investors, brokerage firms, mutual fund companies and so many more. The industry churns out several products and services which by the use of specialized skills and talents are managed efficiently. However, while the agents and brokers owe a critical duty of care and diligence to their clients, they often tend to violate these.

Take, for example, the case of Ketan Parekh, widely known as the ‘Big Bull’. A chartered accountant by profession, Ketan Parekh owned his own business and had connections to wealthy businessmen and the movers and shakers in the industry. ...