India's markets regulator SEBI has barred former Axis Mutual Fund chief dealer Viresh Joshi and Dubai-based trader Prijesh Kurani from the securities market for seven years. The action comes in a front-running case linked to trades involving Axis Mutual Fund.
According to the details available, the regulator's order targets trading activity connected to fund transactions. Front-running typically refers to taking positions ahead of large institutional orders in an attempt to benefit from the expected market impact of those trades.
SEBI has also directed that Rs 30.56 crore in impounded funds be treated as disgorgement. That means the amount is to be treated as money to be given up under the regulator's enforcement action in the case.
The order puts fresh focus on surveillance, compliance and dealing-room practices in the asset management industry. It also highlights SEBI's continued scrutiny of suspected trading patterns around large market orders and its willingness to impose long market bans in such cases.
