Axis MF's former Risk Head settles case with Sebi for tipping off relatives

Former Axis MF Risk head settles case with Sebi for tipping to relatives

Meenal Baheti, former Head of Risk at Axis Mutual Fund, has settled a case with Sebi by paying an amount of Rs 19.50 lakh, according to a settlement order.

As per the order released by Sebi, Baheti had recommended shares to certain relatives, and similarities were observed between trades of these relatives and the active schemes of Axis Mutual Fund during the period when she had access to trade data, including live data.

Furthermore, similarities in trades were observed in stocks in which her relatives and Axis Mutual Fund (or its AIF or PMS entities) had traded during the review period. Sebi conducted a detailed examination and inspection of governance-related aspects of Axis Mutual Fund through a forensic audit covering the period from April 1, 2020, to September 30, 2022.

Sebi’s settlement order said, “Similarities in trades, in addition to 225 WhatsApp calls between Meenal Baheti and her relative, indicated that she had passed on information, advice, or inducement to buy or sell securities that were being bought or sold by Axis Mutual Fund.”

According to Sebi’s order, Baheti violated the Sebi Master Circular on Mutual Funds which states, “No employee shall pass on information to anybody, inducing them to buy or sell securities that are being bought and/or sold by the Mutual Fund for which the AMC is the investment manager.”

Based on the findings of the audit, Sebi had issued a show-cause notice against her under various provisions of the Sebi Act and related rules. During the pendency of the show-cause proceedings, Baheti filed a settlement application in February 2025, proposing to resolve the matter without admitting or denying the findings. The application was registered in March 2025.

Meenal Baheti had joined as Head – Risk, Mutual Fund, on June 14, 2021. As a key managerial personnel (KMP), she had access to live trade data for Axis MF schemes from May 27, 2022 to August 31, 2022.

The settlement order said that the Settlement Application, along with the Revised Settlement Terms (RST), was placed before the High-Powered Advisory Committee (HPAC) in its meeting held on May 7, 2025. The HPAC considered the proposed RST and recommended the case for settlement, which was accepted by Sebi’s panel of Whole-Time Members in June 2025.

In a related development in 2023, Sebi had barred former dealer Viresh Joshi and 20 other individuals from accessing the securities markets in a separate alleged front-running case. Sebi’s investigation found that these individuals had wrongfully earned Rs 30.56 crore through front-running activities.