Axis AMC expels chief trader on front-running allegations
NEW DELHI: Axis Asset Management Company (AMC), the mutual fund promoted by Axis Bank, has terminated its chief trader and fund manager Viresh Joshi, who was facing allegations of front-running.
Front-running refers to an illegal practice in the stock market where an entity trades on the basis of advance information from a broker or analyst before the information has been made available to their clients.
Earlier this month, Axis AMC had suspended two of its fund managers, including Joshi, pending completion of the investigation.
“Axis AMC has been conducting a suo moto internal investigation since February 2022, using reputed external advisors to assist with this ongoing investigation. Further to our investigation, his conduct and following the decision to suspend him, the employment of Viresh Joshi has been terminated with effect from May 18, 2022,” according to a statement from the fund house.
“Accordingly, Viresh Joshi ceases to be a Key Person of Axis AMC,” it added.
However, Axis AMC did not elaborate on the violations that led to its chief trader’s sacking.
Axis AMC, which is one of the leading mutual funds in the country with assets under management to the tune of Rs 2.59 lakh crore, is facing allegations of front running and a reported regulatory probe.
Several complaints were reportedly received by Axis Mutual Fund from stock brokers about fund managers punching in trades on behalf of the fund at values much higher than the market.
The company has been suo moto investigating the case since February.