Axis MF front-running case: Former fund manager Deepak Agrawal settles with Sebi

Axis Mutual Fund Case, Fund manager Deepak Agrawal settles case with Sebi, pays Rs. 85.8 Lakh

Axis MF’s former fund manager, Deepak Agrawal has settled a front-running case initiated by the Securities and Exchange Board of India (Sebi) after agreeing to pay a settlement amount of Rs 85.80 lakh, after concerns over governance came to light. In addition to the settlement, 43,310.73 units held by him in Axis Mutual Fund schemes were clawed back and credited to the respective schemes.

This follows a detailed forensic audit conducted by Sebi covering governance-related aspects of Axis Mutual Fund between April 1, 2020 and September 30, 2022. Based on the findings, Sebi had issued a Show Cause Notice (SCN) to Agrawal in January 2025 alleging multiple regulatory violations including providing stock tips, disclosing confidential scrip-related information, failing to disclose directorship in a private company, unethical behaviour and sharing research meant for mutual fund use with outsiders.

Further, the show-cause notice alleged that Agrawal passed on sensitive information to employees of listed equity alternatives, inducing them to buy or sell securities being transacted by Axis Mutual Fund schemes.

Without admitting or denying the findings, Agrawal opted for a settlement under the Sebi (Settlement Proceedings) Regulations, 2018. The Internal Committee (IC) of Sebi proposed the monetary settlement and claw back of units, which was subsequently recommended by the High-Powered Advisory Committee (HPAC) and approved by the panel of Sebi Whole Time Members in August 2025.

Axis Mutual Fund and various officials of the fund house mentioned in the case have also settled with Sebi in the past. The dealer of the fund house, Viresh Joshi, was also investigated by income tax department and is currently being investigated by the Enforcement Directorate.