Axis Mutual Fund Scandal: ED Charges Former Fund Manager Viresh Joshi Under FEMA
Former Axis Mutual Fund manager Viresh Joshi booked under FEMA, raids underway
Axis Mutual FundFrontrunningViresh JoshiFemaSebiReal Estate MumbaiSep 09, 2024
The agency is conducting searches on premises linked to Joshi and several other brokers since morning. This move comes after the Income Tax Department previously investigated Joshi and several brokers for alleged tax evasion.
In July 2022, the Mumbai investigation wing of the Income Tax Department carried out searches at over 25 locations in Mumbai, Ahmedabad, Vadodara, Bhuj, and Kolkata connected to Joshi. The department also questioned brokers and middlemen involved in the case.
In 2023, the Securities and Exchange Board of India (SEBI) barred former Joshi and 20 other individuals from accessing the securities markets in the alleged front-running case. SEBI concluded that these individuals wrongly earned Rs 30.56 crore from the front-running activities.
SEBI ordered to impound Rs 30.56 crore gained unlawfully by these individuals from the front-running activities. The regulator directed them to deposit the amount into an interest-bearing escrow account created in a nationalised bank within 15 days.
SEBI alleged that Joshi incorporated a company in Dubai to indulge in such fraudulent acts, including transferring the wrongful gains. The regulator suspected that the ill-gotten wrongful gains may have been siphoned off by these individuals to thwart any possible actions from the regulator for recovering such unlawful gains.
Information Axis Mutual Fund is a leading mutual fund company in India, with a wide range of investment products. The company is a subsidiary of Axis Bank, one of the largest private sector banks in India.
Axis Mutual Fund is a trusted name in the Indian mutual fund industry, known for its innovative investment products and customer-centric approach. However, the recent front-running scandal has raised concerns about the company's internal controls and governance practices.
What is front-running? Front-running refers to buying or selling securities ahead of a large order so as to benefit from the subsequent price move. Under this illegal trading practice, a broker's or analyst's use of nonpublic information to acquire securities or enter into options or futures contracts for his or her own benefit.
Keywords Axis Mutual Fund, front-running, Viresh Joshi, FEMA, SEBI, tax evasion
FAQs
Q What is front-running?
A Front-running is an illegal trading practice where a broker or analyst uses nonpublic information to acquire securities or enter into options or futures contracts for their own benefit.
Q Who is Viresh Joshi?
A Viresh Joshi is the former fund manager at Axis Mutual Fund, who has been booked under FEMA in connection with the front-running case.
Q What is FEMA?
A FEMA stands for Foreign Exchange Management Act, which regulates foreign exchange transactions in India.
Q What is SEBI?
A SEBI stands for Securities and Exchange Board of India, which is the regulator of the securities market in India.
Q How much did the individuals involved in the front-running case earn?
A The individuals involved in the front-running case earned Rs 30.56 crore from the front-running activities, according to SEBI.
Frequently Asked Questions
What is front-running?
Front-running is an illegal trading practice where a broker or analyst uses nonpublic information to acquire securities or enter into options or futures contracts for their own benefit.
Who is Viresh Joshi?
Viresh Joshi is the former fund manager at Axis Mutual Fund, who has been booked under FEMA in connection with the front-running case.
What is FEMA?
FEMA stands for Foreign Exchange Management Act, which regulates foreign exchange transactions in India.
What is SEBI?
SEBI stands for Securities and Exchange Board of India, which is the regulator of the securities market in India.
How much did the individuals involved in the front-running case earn?
The individuals involved in the front-running case earned Rs 30.56 crore from the front-running activities, according to SEBI.
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