Sebi bars Axis AMC’s Joshi from capital mkts
1 min read 28 Feb 2023, 11:48 PM ISTMuFormer fund manager Viresh Joshi and 20 other entities have been restrained from accessing capital markets in a 100-page order by the markets regulator.
PremiumMumbai: The Securities and Exchange Board of India (Sebi), in its interim order on Tuesday, directed impounding of ₹30 crore made as wrongful gains in the Axis front-running matter.
“An amount of ₹30 crore being the unlawful gains earned from the prima facie front-running activities is impounded jointly and severally by the noticees," the order said, adding that the wrongful gains have to be deposited in an escrow account of the regulator.
The capital markets regulator also said that the banks are directed to ensure that no debits shall be made without the Sebi’s permission out of the bank accounts held by the entities involved in the matter, except for the purposes of transfer of funds to the escrow account.
Former fund manager Viresh Joshi and 20 other entities have been restrained from accessing capital markets in a 100-page order by the markets regulator.
Essentially, the case pertains to a series of allegations against two executives of Axis Mutual Fund, which include front-running, receiving bribes from brokers and placing trade orders at inflated prices — in complete disregard to investors’ interests.
Front-running includes buying a stock prior to an expected large transaction by a mutual fund that will likely raise the share price.
When mutual funds make a big order, some fund managers buy the same shares in their personal accounts before executing the mutual fund’s order.
Moreover, when these fund houses buy shares in large quantities, the share prices tend to go up.
