Axis Mutual Fund Scam –
Axis Mutual fund sacked the two fund managers- Viresh Joshi and Deepak Agarwal for a possible violation of securities laws. The Axis mutual fund scam comes out when moneycontrol published an article on 2nd May 2022 about the investigation. These two fund managers were alleged to be involved in front-running.
What is Front Running – Brokers have access to information related to the orders of investors in advance. If they illegally use this information to trade in securities to obtain profits on their personal account, such a practice is called front running.
Securities and Exchange Board of India (Sebi) carried out ‘search and seizure’ at 16 entities including offices of Axis Mutual Fund, stock brokers, and individuals as part of the ongoing probe into suspected wrongdoings by two former fund managers of Axis MF
Axis Mutual Fund recently terminated the services of Viresh Joshi, chief dealer, and fund manager at the fund house, as well as Deepak Agarwal, who was a fund manager and equity analyst. Seven schemes of Axis MF that have seen rejigs in fund managers due to the investigation are :
- Axis Arbitrage
- Axis Banking ETF
- Axis Consumption ETF
- Axis Nifty ETF
- Axis Quant Fund
- Axis Technology ETF
- Axis Value Fund
Financial advisors have revealed that they have been getting calls from worried investors. Fired fund managers of Axis Mutual Fund could be banned from markets. Sebi has been analyzing the data of Axis MF with that of its brokers to establish a trend and arrive at a quantum of profit made.
Also check : Basics Of Mutual Fund Investment