Mumbai : Axis Mutual Fund has terminated the services of Fund Manager and Chief Dealer Veeresh Joshi with immediate effect on May 18, the fund house said in a statement.
The statement did not go into details of the reason for its dismissal, but Mint reported on May 18 that Joshi allegedly shared confidential information about the property manager’s business with brokers in Gujarat in exchange for bribes.
A knowledgeable person said, “The tips were apparently shared through screenshots of internal chats on WhatsApp and Bloomberg. The information shared with external brokers was used by seven entities in Gujarat who have used these tips. Had done business in large numbers. Some of these entities were shell companies.” Said about the matter, requesting anonymity.
Axis Mutual Fund Fund managers – Viresh Joshi and Deepak Agarwal – have been suspended in the first week of May based on a preliminary report on the front-running scam. According to preliminary findings, both had assets disproportionate to their known income and had violated SEBI’s code of conduct for fund managers and dealers.
Front-running, or the practice of trading in securities before large client orders, is a serious securities market offense. This not only erodes customer confidence but can also lead to loss or lower prices for customers.