The Securities and Exchange Board of India (Sebi) has imposed penalties totalling ₹7.5 crore on former Axis Mutual Fund chief dealer Viresh Joshi and 20 others in a front-running case linked to Axis Mutual Fund. The market regulator said its action followed findings that the group was involved in trades designed to benefit from confidential information.
According to the case details available, Sebi concluded that Joshi used non-public trading information obtained through his role to generate unlawful gains. Front-running typically involves placing trades ahead of large institutional transactions, allowing those involved to profit from expected price movements once the larger orders hit the market.
The regulator’s order also extends beyond Joshi alone, with a total of 21 people penalised. The matter includes a Dubai-based trader among those named, indicating that Sebi viewed the activity as a wider coordinated arrangement rather than a single-person lapse.
The action underscores Sebi’s continued focus on market abuse and the misuse of confidential trading data within the mutual fund industry. It also puts fresh attention on internal controls at large asset managers and the handling of sensitive dealing information.
