Axis MF Trustees and Directors of the AMC Need To Come Clean on Rumours about Massive Malpractices
Moneylife Digital Team 07 May 2022
Update: 6 May 2022 15.50 hrs to include a response from Axis MF
Axis Mutual Fund (MF) has removed its head trader Viresh Joshi as fund manager from five schemes. Similarly, Deepak Agarwal, the assistant fund manager for equity at Axis MF, is no longer part of schemes like Axis Consumption ETF, Axis Quant Fund and Axis Value Fund.
While there is no other information from the fund house, Axis MF trustees and directors of the asset management company (AMC) must come clean on the reasons for the change because both traditional media and social media are agog with all kinds of stories of malpractices. Here are a couple of tweets:
A newspaper report, which does not name any person or fund, says, "Bloomberg IDs of both the officials have been deactivated. This means both of them are not allowed to be involved in the fund's investment activity."
Quoting sources, the report says, "...the fund manager punched in trades on behalf of the MF at values that were way higher than the market and received kickbacks from brokers. His flashy lifestyle had also raised eyebrows in the market. He is said to be driving a luxury sports car though it is not clear if he owned it."
In its MF Insider segment, says, "The mutual fund industry is abuzz with whispers of an audit by market regulator SEBI into front-running cases within a top-tier asset management company. And if you are curious as to how it came to light, the tale is certain to elicit chuckles. The main accused, the dealer — a resident of the north-eastern suburbs of Mumbai — has been painting the town red in a Lamborghini, and with only limited units of the luxury race car sold, it didn't take long to narrow down on this scam."
Axis MF has changed fund managers for seven of its schemes, Axis Arbitrage Fund, Axis Banking ETF, Axis Consumption ETF, Axis Nifty ETF, Axis Quant Fund, Axis Technology ETF, and Axis Value Fund. Mr Joshi has been removed from five of these schemes, Axis Arbitrage Fund, Axis Banking ETF, Axis Consumption ETF, Axis Nifty ETF and Axis Technology ETF.
According to media reports, market regulator, Securities and Exchange Board of India (SEBI) is examining whether fund managers at Axis MF engaged in 'front-running' or trading securities through their personal accounts ahead of the fund's transactions.
Axis Bank Ltd, the third-largest private sector bank in India, holds a 74.99% stake in Axis MF, with Schroder Singapore Holdings Pvt Ltd holding the rest.
Axis Mutual Fund was set up in 2009. MD & CEO Chandresh Nigam and Viresh Joshi have been part of the original team.
We sent emails and messages to Axis Bank officials as well as to Mr Joshi. There was no response till writing this story. We will update the story as and when we receive any response from Axis Bank and Mr Joshi.
In a statement, Axis MF says it has been conducting suo moto investigation in the matter since February 2022 and used reputed external advisors to aid the investigation. "As part of the process, two fund managers have been suspended pending investigation of potential irregularities. We take compliance with applicable legal and regulatory requirements seriously and have zero tolerance towards any instance of non-compliance."

"The media is requested not to give credence to market speculation and idle gossip, which are baseless and we strongly refute the same," it added.
Pradeep M
7 days ago
hello ML, should we withdraw from axis mutual fund . i have invested in few funds but not the one listed above.
1 week ago
Why didn't Axis MF Management not inform Investors in Feb when they noticed malpracti se ? Why were these two Fund Managers allowed to trade till last week ? When is CEO being sacked ?
Replied to mcshekhar2009 comment 1 week ago
Why didn't Axis MF Management inform...correction ?
1 week ago
Why ED does not take up this matter. They have far more authority than SEBI and other Stock Market related authorities. In fact, SEBI should invite ED and CBI for investigations in such matters if SEBI is serious in stopping such malpractices, which are apparently rampant in MF managers.
ED should just ask the managers to justify their source of income for the Lamborgini and everything will come out.
Kamal Garg
1 week ago
How can someone cook the dealing/punching price when there is supposed to be a multi-layer scrutiny and office peer-to-peer grapevine. Does it mean that even the senior/top management turned blind eye to all what has been happening. It is a shame on Axis MF.
Replied to Kamal Garg comment 1 week ago
Haftha ooper thak jaatha hai. CEOs of Axis MF. Axis Bank, Schroeder London and corrupt luminaries called trustees feasting on middle class money.
1 week ago
How can one front run Nifty Etf ?
Replied to Nahom comment 1 week ago
It's one of the schemes where Joshi was fund manager. Details of trades are not disclosed. It would be probably in case of Arbitrage fund and other Active equity funds
1 week ago
As if it is something new. This practice is rampant in the Mutual Fund Industry since time immemorial.

1 week ago
Absolutely shameful. Common man trust the MF for their expertise and if the people who are running and managing the funds are dishonest crooks what is the sanctity of Mutual Funds. Again nothing will happen to any of these crooks who will hire the best lawyers to thwart any action against them. What action is SEBI going to take against them and will the concerned people be arrested immediately?
Shamefully Slow Resolution of Financial Scams Damages India’s Wannabe Image as a Superpower. Can It Change Now?
Sucheta Dalal, 07 May 2022
On 30th April, the chief justice of India (CJI), NV Ramana, mentioned in a speech that India has 40mn (million) cases pending in lower courts and that the government was the biggest litigant accounting for 50% of these cases. At...
RBI Hikes Repo Rate by 40bps to 4.40% on Higher Food Inflation
Moneylife Digital Team 04 May 2022
In a surprise move, the monetary policy committee (MPC) of the Reserve Bank of India (RBI) has unanimously decided to increase the repo rate by 40 basis points (bps) to 4.40% with immediate effect. Consequently, the standing deposit...
Ruchi Soya Share Manipulation: After 10 Years, SEBI Slaps Rs25 Lakh Penalty on 9 for Fraudulent Trade Practices
Moneylife Digital Team 03 May 2022
Nine entities in the scrip of Ruchi Soya Industries Ltd, that were found indulging in fraudulent trade practices about 10 years ago, have been slapped with a total penalty of Rs25 lakh by market regulator Securities and Exchange...
NSE Co-location Case: SEBI Imposes Penalty of Rs6 Lakh on Pace Stock Broking
Moneylife Digital Team 03 May 2022
Market regulator Securities and Exchange Board of India (SEBI) has imposed a Rs6 lakh penalty on Pace Stock Broking Services for flouting norms related to National Stock Exchange (NSE)'s co-location facility.
The order...
Free Helpline
Legal Credit