Axis Mutual Fund In Front Running Case: Seized ₹1.29 Million From Raids

The Enforcement Directorate (ED) has seized 1.29 million rupees ($15,360) in raids conducted in Mumbai and Kolkata as part of an ongoing investigation into front-running allegations at Axis Mutual Fund.

The probe was initiated last year after the Securities and Exchange Board of India (SEBI) identified wrongful gains of 305 million rupees stemming from suspected front-running activities.

Front-running involves profiting from trading securities ahead of large client orders. SEBI had previously barred 21 entities, including Viresh Joshi, the former chief dealer at Axis MF, from the capital markets.

According to the ED, Joshi allegedly shared market-sensitive information with brokers in Dubai in exchange for kickbacks. These brokers would then execute trades on his behalf, and the profits were routed through entities based in Kolkata.

Axis Mutual Fund issued a statement confirming that the ED’s action was related to an individual whose employment was terminated due to a self-initiated investigation.

“Joshi was allegedly sharing market-sensitive information in return for kickbacks from brokers having terminals in Dubai who could execute trades on his instructions,” the ED said in a press statement announcing the searches.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.