I-T department raids Axis Mutual Fund’s former chief trader

The I-T department conducted raids on the premises of Axis Mutual Fund’s former chief trader, Viresh Joshi, over allegations of tax evasion.

The Income Tax (I-T) Department carried out raids on the premises belonging to former Chief Trader and Fund Manager of Axis Mutual Fund, Viresh Joshi, in connection with alleged tax evasion. The raids were conducted on Saturday. Viresh Joshi is also alleged to have properties overseas.

The I-T department also raided some middlemen and several brokers in connection with the case. In May, Axis Asset Management Company, the mutual fund promoted by Axis Bank, sacked Viresh Joshi over allegations of front-running.

Front-running refers to an illegal practice in the stock market where an entity trades on the basis of advance information from a broker or analyst before the information has been made available to their clients.

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"Axis AMC has been conducting a suo moto internal investigation since February 2022, using reputed external advisors to assist with this ongoing investigation. Further to our investigation, his conduct and following the decision to suspend him, the employment of Viresh Joshi has been terminated with effect from May 18, 2022,"the fund house had said in a statement.

"Accordingly, Viresh Joshi ceases to be a Key Person of Axis AMC," it added.

Axis AMC, which is one of the leading mutual funds in the country with assets under management to the tune of Rs 2.59 lakh crore, is facing allegations of front running and a reported regulatory probe.