Axis Mutual Fund (MF) in a surprising move announced it has suspended two fund managers as the market remained abuzz of alleged front running.
Axis MF released a statement on social media stating that it has been running an investigation for the last two months and two fund managers have been suspended pending investigation of potential irregularities.
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Axis Mutual Fund removed Viresh Joshi, head trader and fund manager, from the fund management team of seven of its equity schemes. Deepak Agrawal, equity research analyst and fund manager, has also been removed from the management team of three funds.While Joshi has been with Axis MF since 2009, Agarwal joined the fund house in 2015 as an equity research analyst.
Front running involves a trader in a securities firm acting on prior information that is almost equivalent to insider trading.
Axis Mutual Fund is the seventh-largest mutual fund. Its holding is in 81 shares and the asset under management is also about Rs 2 lakh 60 thousand crores.