Axis Mutual fund as per reports is under the market watchdog’s scanner. The SEBI is scrutinizing whether or not the mutual fund’s fund managers have been involved in “front running” which is simply engaging in trading of securities via personal accounts ahead of the funds’ transactions.
Meanwhile, as per MoneyControl Axis Mutual fund has submitted before the board of Axis Bank that as the investigations are going on it has removed the two fund managers and debarred them from any of its fund management. This is more so as mutual funds engage in large sized transactions which impact the movement of the price and a person with knowledge of such transactions can carry transactions in his or her interest.
Further as per the report, the Axis Mutual Fund said it has been carrying out a suo moto investigation over the last two months, since February, and deployed reputed external advisors to aid the investigation.
The officials under scrutiny are Viresh Joshi and Deepak Agarwal. Viresh Joshi was the head dealer and fund manager of five of the mutual fund schemes at Axis Mutual Fund. Deepak Agarwal was equity research analyst and fund manager for three mutual fund schemes.
Also, these two officials are no longer reflecting as the fund manager of any of the Axis Mutual fund’s schemes. Joshi used to manage – Axis Arbitrage Fund, Axis Banking ETF, Axis Nifty ETF, Axis Technology ETF and Axis Consumption ETF. Agarwal managed Axis Consumption ETF, Axis Quant Fund and Axis Value Fund.