The Securities and Exchange Board of India (SEBI) has banned Viresh Joshi, the ex-chief dealer of Axis Mutual Fund, from the securities market for seven years and fined him Rs 3 crore. Additionally, 20 other entities involved in the case have been debarred for periods ranging from three to seven years, with penalties between Rs 10 lakh and Rs 1 crore.
SEBI’s action follows an interim order issued in February 2023, revealing a front-running network operating between September 1, 2021, and March 31, 2022. The regulator estimated the illicit gains from the scheme at approximately Rs 30.55 crore, which has been impounded.
The investigation found that Joshi misused his position by sharing confidential information on impending trades with external associates. These associates executed front-running trades from Dubai, channeling the profits through offshore entities. Orders were placed using ODIN terminals from Dubai after receiving advance information about the fund’s transactions.
Evidence, including WhatsApp conversations, indicated coordinated communication among the accused using coded identities to conceal their actions. SEBI noted that some individuals involved in the case had previous links to market manipulation in other securities.
