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Axis AMC sacks fund manager Viresh Joshi on alleged misconduct

Axis Mutual Fund basis a preliminary report on the front-running scam has suspended fund managers—Viresh Joshi and Deepak Agarwal in first week of May (Photo: iStock)Premium
Axis Mutual Fund basis a preliminary report on the front-running scam has suspended fund managers—Viresh Joshi and Deepak Agarwal in first week of May (Photo: iStock)

Axis AMC statement did not go into details of the reason behind its sacking but Mint reported on 18 May that Joshi allegedly shared confidential information about the asset manager’s trades with brokers in Gujarat in return for kickbacks

MUMBAI : Axis Mutual Fund on 18 May terminated the services of fund manager and chief dealer, Viresh Joshi with immediate effect, the fund house said in a statement.

The statement did not go into the details of the reason behind its sacking but Mint reported on 18 May that Joshi allegedly shared confidential information about the asset manager’s trades with brokers in Gujarat in return for kickbacks.

"Tips were apparently shared through WhatsApp and screenshots of internal Bloomberg chats. The information shared with outside brokers was used by seven entities in Gujarat who traded on these tips in large numbers. Some of these entities were shell companies," said a person with knowledge of the matter said, requesting anonymity.

Axis Mutual Fund basis a preliminary report on the front-running scam has suspended fund managers—Viresh Joshi and Deepak Agarwal in first week of May. The two as per the prelim findings had assets disproportionate to their known income and violated Sebi’s code of conduct for fund managers and dealers.

Front-running, or the practice of trading in securities ahead of large client orders, is a serious securities market offence. It not only erodes customers’ trust but can also lead to losses or inferior prices for customers.

ABOUT THE AUTHOR

Jayshree P Upadhyay

Jayshree heads a team of reporters focussing on legal, regulatory, investigative stories. She has worked for over a decade, reporting on financial scams, legal stories and the intersection of corporate and regulatory issues. She is based in Mumbai and has previously worked with Business Standard, Mint, The Morning Context and Bloomberg TV India.
Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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