Axis AMC sacks chief dealer Viresh Joshi over front-running allegations

Axis Asset Management Company (AMC) has terminated the employment of Viresh Joshi amid allegations of irregularities. Joshi was a chief trader and fund manager with the fund house. 

“The employment of Viresh Joshi – chief trader & fund manager with Axis Asset Management Company Limited has been terminated with effect from May 18, 2022. Consequently, he ceases to be a key person of Axis AMC. Accordingly, all references to Joshi in the SAI of the fund stands deleted," said Axis MF in an addendum.

The reason for termination was not given. Earlier, Axis AMC had also suspended Joshi and Deepak Agarwal. The fund house had reassigned responsibilities of the duo to other fund managers for 7 schemes.

On May 6, the fund house had issued a statement stating that it had launched a suo motu investigation two months ago to probe potential irregularities.

“Axis MF has been conducting a suo moto investigation over the last two months (since February 2022). The AMC has 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/regulatory requirements seriously, and have zero tolerance towards any instance of non-compliance,” it had said.

Sources said the Securities and Exchange Board of India (Sebi) too, has launched a preliminary investigation into the matter. The regulator has asked the fund house to send investment activity reports and could also check for possible nexus between the fund managers and brokers for potential front running of stocks.

Joshi has been associated with Axis AMC since 2009 and was the chief trader and fund manager. His core responsibilities included managing arbitrage fund & derivatives trading strategies. He used to oversee Axis Arbitrage Fund, Axis Technology ETF, and Axis Consumption ETF.