Axis Mutual Fund case: SEBI probing the case sent two fund managers on leave, action against Viresh Joshi and Deepak Agarwal
Two fund managers Viresh Joshi and Deepak Agarwal have been sent on leave after the matter of insider trading (front running) in the country's seventh largest fund house Axis Mutual Fund came to light. Markets regulator SEBI has also started investigation in the matter. According to the information, Viresh used to manage seven equity schemes of this fund house, while Agarwal was Equity Research and Fund Manager. He too has been sacked from managing 3 funds. According to sources, this action has been taken after receiving complaints against both of them. Axis Mutual Fund was investigating both the fund managers since February 2022. It took the service of an internal consultant. The fund house said that we will take action based on regulatory requirements.
Front running is illegal
The seven schemes managed by these fund managers were Axis Consumption ETF, Axis Banking ETF, Nifty ETF, Arbitrage Fund, Quant Fund, Technology Fund ETF and Value Fund. Front running means when a fund manager buys or sells a large number of shares based on specific information and makes profit from it. Such activities are considered illegal in India.
Investors need not panic
Mutual fund advisors advise that investors should not take any decision on this at the moment. Since many fund managers manage these schemes, there is no need to panic. Axis Fund was launched in 2009. Its core team at that time consisted of MD Chandresh Nigam and Viresh Joshi. At present, its asset under management is Rs 2.59 lakh crore.