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.
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