Mumbai: The Securities and Exchange Board of India (SEBI) in its interim order on Tuesday directed forfeiture of shares 30 crores made as wrongful gain in the ongoing case before Axis.
“an amount of The order said that Rs 30 crore prima facie illegal profits earned from front-running activities have been jointly and severally forfeited by the notice, adding that the wrongful profits are to be deposited in the escrow account of the regulator.
The capital markets regulator also said that banks have been directed to ensure that no debits are made from the bank accounts of the entities involved in the matter except for the purposes of transfer of funds to the escrow account without the permission of SEBI.
Former fund manager Viresh Joshi and 20 other entities have been barred from accessing capital markets by the markets regulator in a 100-page order.
Essentially, the case pertains to a series of allegations against two executives of Axis Mutual Fund, including front-running, receiving kickbacks from brokers and placing trade orders at inflated prices – in complete disregard of investors’ interests Happened.
Front-running involves buying stock by a mutual fund before an expected large transaction that is likely to increase the share price.
When mutual funds place a large order, some fund managers buy the same shares in their personal accounts before the mutual fund executes the order.
Also, when these fund houses buy shares in large quantities, the share prices go up.
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