Axis Mutual Fund front-running case: Former chief trader spilled insider information to links in Dubai

Axis Mutual Fund front-running case has been under regulatory scanner since early May 2022.

As a fresh development in the investigation of the Axis Mutual Fund case, it has been revealed that Viresh Joshi, the former chief trader and fund manager at the fund house, was allegedly sharing specific trade-related information with brokers, middlemen and related people in Dubai, sources told ET.

"We have noticed a new trend. (Leveraging) technology, certain brokers are using remote locations to place orders," ET reported citing people aware of the matter.

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Axis Mutual Fund's front-running case has been under the regulatory scanner since early May 2022. On May 28, 2022, SEBI conducted searches at multiple premises associated with 16 'suspected entities.'

Front-running, which involves dealing in stocks based on insider knowledge of a future transaction, is considered one of the most serious offences by SEBI. The matter came under the lens after Axis Mutual Fund suspended its two fund managers, Deepak Agrawal and Viresh Joshi, on May 19, 2022, amid allegations of irregularities in managing their funds. Later, both were sacked for alleged misconduct.

Following the dismissal, Joshi filed a lawsuit in June, accusing the asset management company of unfairly terminating his employment in connection with a suspected front-running case.