Sebi Bars Axis Mutual Fund Ex-Dealer for Front-Running Scheme

The Securities and Exchange Board of India (Sebi) barred Viresh Joshi, the former chief dealer at Axis Mutual Fund, from the securities market for seven years and imposed a ₹3 crore penalty. The regulator found that between September 1, 2021, and March 31, 2022, Joshi orchestrated a front-running scheme by leaking confidential information about impending fund trades to a Dubai-based trader, Prijesh Kurani.

Kurani and a network of intermediaries, including Sumit Desai, Pranav Vora, and Vaibhav Pandya, executed trades through 15 mule accounts to profit from expected price movements. The operation generated approximately ₹30.55 crore in unlawful gains, with Visa Capital Partners accounting for the largest share. Sebi also barred 20 other linked individuals from the market for periods ranging from three to seven years, with fines between ₹10 lakh and ₹1 crore, bringing the total penalties for all 21 entities to approximately ₹7.5 crore.

Sebi officer Biju S described Joshi as the architect of the scheme who coordinated the trading activity and used a Dubai-based company to obscure the trail of illicit proceeds. The regulator's decision relied on evidence including WhatsApp chats and call records, concluding that the conduct placed private gain ahead of the interests of the mutual fund's investors.