Axis MF, India’s seventh largest mutual fund by assets, said it has been conducting a suo motu investigation since February 2022
In yet another mutual fund scam, Axis Mutual Fund suspended two fund managers for violations on Friday. According to an Axis Mutual Fund notice on May 4, two fund managers of Axis Mutual Fund — Viresh Joshi and Deepak Agrawal — were dropped as fund managers of four ETF schemes (Axis Consumption, Axis Banking, Axis Nifty, and Axis Technology) and three funds (Axis Arbitrage Fund, Axis Quant Fund and Axis Value Fund).
The two managers are facing allegations of ‘front running’, an illegal practice where an individual or broker uses his position to take advantage of likely price movement or change in the price of a security or asset.
Also read: Mutual funds add over 3 cr folios in FY22 on sharp rally in equity market, digitisation
Those accused of front running, after getting information in advance about a big transaction in a particular stock, invest in that stock through a personal account before the trade is executed. Once the broker executes the large order, the price of the share goes up and the broker sells his/her shares to generate a profit.
Advertisement
Suo moto investigation
Axis MF, India’s seventh largest mutual fund by assets, said it has been conducting a…
