Mumbai, July 24, 2026 (Yes Punjab News)
The Securities and Exchange Board of India (SEBI) has barred former Axis Mutual Fund Chief Dealer Viresh Joshi from the securities market for seven years and imposed a penalty of Rs 3 crore after finding him guilty of front-running trades involving the fund house.
In its final order issued on Friday, the market regulator also debarred 20 other entities linked to the case for periods ranging from three to seven years and imposed penalties between Rs 10 lakh and Rs 1 crore.
The case stems from an investigation into an alleged front-running network that operated between September 1, 2021 and March 31, 2022. SEBI had issued an interim order-cum-show cause notice in February 2023 and estimated the unlawful gains from the scheme at around Rs 30.55 crore, directing that the amount be impounded.
According to the regulator, Joshi misused his position as Chief Dealer by sharing confidential, unpublished information relating to Axis Mutual Fund’s impending trades with external associates, enabling them to execute front-running transactions before the fund’s orders were placed.
SEBI said the trades were executed from Dubai using Open Dealer Integrated Network (ODIN) terminals provided by brokerage firms, with alleged illicit gains routed through offshore entities. The investigation also uncovered the use of multiple mule accounts and WhatsApp conversations indicating coordinated communication among the accused using coded identities.
The regulator observed that several individuals involved in the case had also been linked to market manipulation in other securities.
In its order, SEBI said misuse of confidential information by those entrusted with managing mutual fund investments undermines investor interests and compromises the integrity of the securities market.
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