Axis AMC responded to reports of the removal of fund managers amid allegations of front running by some of its officials. The company stated that two of the fund managers have been suspended pending investigation of potential irregularities.
“Axis AMC has been conducting a suo motu 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 for any instance of non-compliance.
The media is requested to not give credence to market speculation and idle gossip, which are baseless and we strongly refute the same,” it added.
According to reports, Axis Mutual Fund has changed the fund manager for as many as seven schemes. Chief Trader & Fund Manager Viresh Joshi and Assistant Fund Manager Deepak Agrawal are among the seven managers. Joshi and Agarwal have been with the company since 2009 and 2015 respectively.
Joshi was the fund manager of Axis Arbitrage Fund, Axis Banking ETF, Axis Consumption ETF, Axis Nifty ETF and Axis Technology ETF, while Agarwal managed Axis Consumption ETF, Axis Quant Fund and Axis Value Fund.
The funds have been allocated to other fund managers.
Front running refers to an illegal activity where shares are traded on based on advance information passed by an individual or firm.
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